UK retailer Sainsbury's has revealed that it has made good sales progress through the first quarter of 2009, despite the difficulties encountered as a result of the current economic crisis, while also outlining its plans for future growth.
Total sales during the first 12 weeks of the fiscal year increased by 3.2 per cent, the group reported, with like-for-like sales rising by 7 per cent excluding.
'I'm delighted to report another strong quarter of sales growth as we continue to provide universal customer appeal and build on the strength of the Sainsbury's brand,' said group CEO Justin King in a statement. 'Customer numbers have increased to over 18.5m a week and basket size has grown as further investment in price and product ranges helps customers get the best value from their weekly grocery shop.'
Through the quarter, the company created an additional 1,000 new jobs, opened five new stores and extended two supermarkets, while also announcing the acquisition of a further six supermarkets and three convenience stores from the Co-operative Group.
Sainsbury's has also revealed that it is planning to raise capital of $445m through a placing of new ordinary shares and an issue of convertible bonds – a move that Mr King said would provide the group with the flexibility to grow the business 'further and faster', boosting space by 15 per cent (232,000m2) by March 2011.
'We have had a strong start to the new financial year,' Mr King added. 'While we expect the economic environment to remain challenging during 2009, our wider customer base and focus on great products at fair prices means we are well positioned to continue our progress.'
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