Sainsbury's growth faltered as it reported a 5.4 per cent rise in second quarter sales and warned that growth across the market is set to slow down in the next few months.
Like-for-like sales, which ignore new store openings, for the 16 weeks to October 3 rose 4.6 per cent excluding fuel, while in the previous quarter, like-for-like sales at Sainsbury's had grown by seven per cent.
The upmarket retailer said it now makes more than 18.5 million transactions a week, up 800,000 year on year. The retailer opened a total of 24 supermarkets in the first half of the year and said these were performing ahead of expectations.
Chief executive Justin King said: “The Sainsbury’s brand continues to perform well in what remains a challenging consumer environment.
“We have continued to develop our offer, providing customers with both the quality they expect from Sainsbury’s and prices they increasingly recognise provide outstanding value for money. Our strong momentum has also continued with record levels of product availability and customer service, and last week we were delighted to be named Supermarket of the Year at the 2009 Retail Industry Awards.
“We opened 19 new supermarkets, including 14 Somerfield and Co-operative supermarkets acquired earlier this year…
“We have announced plans to create 10,000 new jobs in the two years to March 2011, primarily through the opening of new stores and in the quarter we created 1,500 new jobs.
“Our performance in the first half continues to show good progress as we also invest for the future. While we expect market growth to slow in the coming months due to reduced inflation, the universal appeal of our focus on quality and value leaves us well positioned going forward.”
Recruitment for the retailer’s 20,000 temporary Christmas staff begins next week.
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