Sainsbury’s races ahead of Tesco as consumers go wild for its own-label brands

 

Sainsbury’s today put clear daylight between itself and the grocery market leader Tesco by posting its 34th consecutive quarter of sales growth.

This was largely driven by a strong performance from its smaller stores, online grocery business and consumers putting record numbers of its own-label products in their baskets. The country’s third-biggest supermarket chain grew its underlying sales, excluding fuel, by 0.8 per cent over the 12 weeks to June 8, much better than the falls of 1 per cent and 1.8 per cent at Tesco and Morrisons respectively. Under its long-serving chief executive Justin King, pictured, Sainsbury’s has been one of the grocery industry’s most consistent performers, although Tesco and Morrisons remain more profitable.

King described the numbers as “solid” in a “tough consumer environment” but its trading was behind Asda’s 1.3 per cent growth in its first quarter. However, Sainsbury’s big three rivals have not yet posted figures that overlapped the Queen’s Diamond Jubilee last year, which boosted food and drink sales for all.

Sainsbury’s was lifted by the recent relaunch of its core By Sainsbury’s own-label range, which delivered sales up by nearly 7 per cent in its latest quarter. Its premium Taste the Difference range also shone with growth of more than 10 per cent to make it a £1 billion brand.

Online grocery sales rose by 16 per cent in Sainsbury’s over the 12 weeks and are likely to smash through the £1 billion barrier in the current quarter.

Unlike Tesco, Sainsbury’s is benefiting from not having a big estate of hypermarkets rammed with non-food, such as TVs and stereos, demand for which is tanking during the consumer downturn. “We never believed” in having lots of these hypermarkets, said King.

News
peoplePaper attempts to defend itself
Voices
voicesWe desperately need men to be feminists too
Life and Style
food + drink
Arts and Entertainment
British actor Idris Elba is also a DJ and rapper who played Ibiza last summer
film
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

IT Project manager - Web E-commerce

£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits