Sainsbury's is "encouraged" by recent trading performance which it says is showing "sustained" growth. The early signs are that the chain’s three-year recovery plan is working.
Like-for-like sales increased by 1.3 per cent, excluding petrol, in the 12 weeks to June 18. Overall sales for the quarter were up 5.7 per cent.
Chief executive Justin King hailed the results as illustrating "continued progress".
"We are encouraged by our trading performance in the first quarter of this financial year which shows sustained underlying sales growth," he said.
"Given the more difficult and competitive grocery retail market over the past three months, like-for-like sales growth of 1.3 per cent represents continued progress."
After reporting a drop in profits to £15m from £610m the previous year, Sainsbury’s is seeking to improve product availability by sorting out IT and delivery problems which had hit its supply chain.
King said the indications are that this is being rectified with customers "increasingly seeing the benefit of our better availability".
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