Sainsbury's to push on with store openings
Sainsbury's has insisted that – unlike its big rivals – its rapid store-opening programme will not hit its performance as it posted a 7 per cent jump in half-year profits.
The UK's big four grocers – Tesco, Asda, Sainsbury's and Morrisons – will add 19 million square feet of new space between 2010 and 2014, which City analysts feel is excessive in a sector where sales volumes are declining.
But Justin King, chief executive of Sainsbury's, which aims to add 1.4 million square feet of space in 2011-12, said its plan was more balanced – in terms of proportion of new supermarkets, convenience stores, extensions and rebadges of acquired shops – than its rivals'. He added it was also "massively" more weighted towards opening new stores away from its existing branches, thus minimising the prospect of sales cannibalisation.
Mr King said: "Over a third of our space is more than eight miles from an existing [Sainsbury's] supermarket."
For the 28 weeks to 1 October, the company's underlying pre-tax profits rose 6.6 per cent to £354m. Boosted by higher fuel prices, sales were up 7.6 per cent to £12.9bn. Mr King said: "We remain a nose ahead of our rivals."
While Sainsbury's like-for-like sales rose by 1.9 per cent, they were flat once the impact of store extensions and VAT is stripped out.
- 1 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 2 The secret report that helps Israel hide facts
- 3 Is Ebola coming to Britain? UK health officials issue warning to doctors as outbreak fears grow
- 4 Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
- 5 Danish TV reporter is all business up top, all party down below
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...