Sainsbury’s total sales for Q4 have dropped by 1.5 per cent and like-for-like sales are down 3.8 per cent.
The UK’s third largest retailer maintained its market share of 17 per cent, where it sits behind Asda at 17.5 per cent and Tesco at 28.7 per cent, according to Kantar figures for the 12 weeks to 2 March.
Chief executive Justin King said declines reflect tough comparatives, as this time last year sales benefited from discovery of horsemeat in some competitors’ products.
“The later timing of Easter and Mother’s Day, which fall in quarter one of our new financial year, and unseasonable weather have also contributed to lower market growth year-on-year,” King said.
“We continue to see growth in our own-brand ranges, significantly ahead of branded products, with penetration now at 51 per cent, versus 47 per cent for the market.
“Our own-brand products are, on average, 20 per cent cheaper than a branded equivalent and are also supported by the values that our customers expect of us.”
King said growth in the company’s convenience channel remains at over 15 per cent, with 22 new stores opened during the last quarter. In total Sainsbury’s has opened 91 convenience stores this year, and 13 new supermarkets at an average of around two new stores per week.
“We are part way through a programme to refit produce equipment in existing stores, responding to customer demand for more fresh food.
“Our groceries online business is growing at six per cent year-on-year, reflecting a reduction in marketing while the new customer website is launched. This roll-out is now 80 per cent complete and is due to finish in April.”
He added: “We remain confident that our differentiated offer, supported by ‘value for values’, Nectar data and Brand Match, will allow us to outperform our peers in the year ahead.'
No comments yet