Sainsbury’s has praised its Brand Match promotion for improving its price perception on branded groceries and helping to deliver a 7.1% increase in underlying profits to £712m in the year to 17 March 2012.
Total sales, excluding fuel, rose 4.5% and 2.1% on a like-for-like basis, driving an increase in market share to 16.6%, the highest for nearly a decade, according to Kantar data.
Sainsbury’s said it has also enjoyed good growth in own label ranges, with the premium Taste the Difference range up 8.2% and value range, basics, up 6.8%.
In its core by Sainsbury’s own label range, 3,700 products have now been relaunched, more than half of the total, the supermarket added.
Sales of general merchandise and clothing, meanwhile, are reported to be growing faster than the food business and gaining market share.
Sainsbury’s said its Local convenience business is now worth £1.3bn, with like-for-like sales growing ahead of the market; while online sales have grown by 20% to £800m. The Click & Collect service is now availalble in over 900 stores and around 50% of general merchandise orders go through this channel, said Sainsbury’s.
Justin King, chief executive said: “We are succeeding by understanding what our customers want, supporting and inspiring them to Live Well For Less. Delivering quality and value is a compelling offer, in tune with what today’s savvy shoppers want.
“Brand Match, combined with our use of coupon-at-till, has improved Sainsbury’s price perception whilst retaining the benefits of our heritage in quality and service. We have continued to invest in the future of the business, including opening a further 1.4m sq ft of gross space, whilst managing costs and increasing net underlying margins.
“Whilst the wider economic situation remains uncertain, we remain confidentour clear strategy, market insight and strong values will enable us to make further progress both in our core food and non-food businesses, as well as new channels and services in the year ahead.”