Sainsbury Plc posts higher third quarter sales
12 Jan 2011
According to J Sainsbury Plc, the UK's third- largest supermarket owner, its third quarter sales were boosted by shoppers' preference for more expensive foods including the retailer's Taste the Difference range.
In a statement, the London-based retailer said, revenues at stores open at least a year, including value- added tax and excluding petrol sales, were up 3.6 per cent in the 14 weeks to 8 January.
According to analysts, the company ''reported a very solid third-quarter trading statement.'' They added they estimated that Sainsbury had outstripped like-for-like growth achieved by the three main UK supermarket operators that include market leader Tesco and ASDA.
Sainsbury added to its premium private label offering in the run-up to Christmas on strong expectations customers would spend more during the holiday season. The retailer's share of UK grocery spending rose to 16.6 per cent in the 12 weeks to 26December from 16.3 per cent a year earlier, according to research company Kantar Worldpanel.
Doubling its highest-priced Taste the Difference line, which typically accounts for about 5 per cent of the chain's products, it added 300 items including a tub of mince- pie ice cream for £3 ($4.70) and Conegliano prosecco for £ 9.99.
Sales of Taste the Difference products grew 10 per cent over the quarter, on a 20 per cent growth in the week before Christmas, chief executive officer Justin King said on a conference call. Revenue from the brand's Norfolk Black Woodland free-range turkeys was up 30 per cent in the quarter, and smoked- salmon sales rose 16 per cent, according to Sainsbury.
