Sainsbury's has announced that total sales for the 52-week period ended 21 March 2009 jumped 5.7 per cent to £20.4bn, although total profit for the year fell 12.2 per cent from £329m to £289m.
Like-for-like sales increased by 4.5 per cent, with underlying profit before tax up 11.3 per cent to £543m from £488m in 2007/08.
The results meant four years of continued like-for-like sales growth for the retailer, which also reported that customer volume growth had led to over 18m transactions taking place each week.
'Our business is growing because we have responded quickly and effectively to a rapidly changing environment,' said group CEO Justin King. 'Total sales for the year were up 5.7 per cent and like-for-like sales excluding fuel were up 4.5 per cent. In addition, we have continued to drive cost efficiencies, offsetting over 75 per cent of cost inflation, and delivered further profit growth.
'Although consumer confidence in the UK has declined during the year, our performance improved as a result of the strength of the Sainsbury's brand and actions we have taken to adjust our offer to changing consumer trends,' he added. 'Sainsbury's 'good, better, best product range hierarchy has provided customers with the flexibility to change what they buy, rather than where they shop.'
A key factor in the group's success was the extension of the 'basics' discount range, which now consists of over 650 products, with over 70 per cent of Sainsbury's shoppers buying into the range during the year.
Mr King remained confident for the future despite the current economic climate in the UK.
'Out progress in the last four years has made the company a stronger business with a wide customer base and a universal appeal,' he said. 'We are performing well and have significant opportunities for future growth. We expect the current economic environment to remain challenging but our focus on doing a great job for customers means we are well positioned to continue our good progress.'
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