Justin King, Sainsbury’s chief executive, has reported that “recovery is firmly on track” following record sales in the week before Christmas.
Total sales for the quarter, excluding fuel, were up 6.8 per cent, and like-for-like sales, excluding fuel, were up 5.0 per cent, according to third-quarter figures for the 12 weeks to December 30, 2006.
The retailer had more than 20 million customers in the week before Christmas and online sales over the period increased by more than 60 per cent.
Premium own-label range Taste the Difference saw sales growth of around 20 per cent.
But grocery inflation in the third quarter was 1.7 per cent on the back of rising energy and commodity prices evident throughout the grocery market, and cost increases in fresh produce, King added.
He said: “Achieving our eighth consecutive quarter of like-for-like sales growth demonstrates that our recovery remains firmly on track.”
King also fuelled the debate on food labeling and announced that the Food Standards Agency-approved traffic-light system now features on more than 4,000 products.
He added: “We are passionate about helping our customers shop, cook and eat in a health conscious manner. Customers have told us that they prefer using multiple traffic light information as the colour-coded front of pack summary makes it easier for them to make quick decisions about product nutrition when in store. Our sales data and customer feedback shows customers are using this information to choose food that forms a better balanced diet.”
King also looked ahead to a supermarket price battle and said Sainsbury’s is to invest £70 million in the customer offer and reducing prices on another 1,000 products.
He said: “Traditionally the next few months are particularly price competitive as customers tighten their belts, and we expect this year to be no different. We are continuing with our plans to ensure we remain competitive.
“We are pleased with our progress over Christmas and the results achieved give us good momentum to deliver sales growth as we enter the fourth quarter.”
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