Sainsbury's sees profits rise 6.6 per cent


Sainsbury's said its efforts to help shoppers cope with tighter budgets were paying off after it reported a 6.6 per cent rise in half-year profits today.

The supermarket, which revealed a surplus of £354 million for the six months to October 1, increased total sales by 7.6% to £12.8 billion as customer visits to its stores rose by nearly one million to almost 22 million a week.

It hailed the success of initiatives such as "Live Well for Less" and its "Feed your Family for £50" weekly meal planner and said recent investment in its food and clothing ranges was also paying off.

Chairman David Tyler said: "We are pleased with our sales and profit performance, given the challenging economic environment."

Figures published yesterday by research firm Kantar revealed Sainsbury's achieved a 16.1% share of the grocery market in the 12 weeks to October 30, compared with 30.5% for Tesco and 17.3% at Asda.

The retailer's like-for-like sales including VAT were up 1.9% in the six months to October 1, well below the rate of inflation as households manage down their spending and stores compete for business.

The latest shots in the ongoing supermarket price war saw Sainsbury's roll out its Brand Match scheme in response to Tesco's £500 million Big Price Drop campaign on 3,000 staple items. Asda has also been offering customers £5 off their next shop when they spend £40.

Sainsbury's said the high price of fuel continued to influence consumer spending and shopping habits.

It added: "With fuel costs representing a higher proportion of disposable income, customers are reducing what they spend on their weekly grocery shopping and are continuing to budget prudently.

"By purchasing fewer items on each shopping trip and doing more top-up shopping, customers are not only demonstrating a desire to keep a tight rein on budgets but also to reduce food waste."

Sainsbury's recently launched a womenswear range designed by television presenter and fashion consultant Gok Wan under the Gok for Tu brand.


Start your day with The Independent, sign up for daily news emails
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific