Convenience and online business fuel Sainsbury’s like-for-like sales growth in Q2

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Convenience stores driving growth

Convenience stores driving growth

Sales in Sainsbury’s convenience stores rose 20% in the second quarter compared with the same time last year, while its online grocery business grew by 15% in the same period.

Both helped Sainsbury’s deliver a 2.1% increase in like-for-like sales for the 16 weeks to 28 September 2013.

Like-for-like sales rose 1.5% in the first half.

Justin King, chief executive, said: “Our groceries online business grew by over 15% in the quarter and is now worth over £1bn in annual sales. Our convenience business grew 20% year-on-year as customers topped up more frequently during the warm summer weather.”

In food, Sainsbury’s said its own-brand offer continues to grow at over twice the rate of brands, with Taste the Difference growing particularly strongly and by Sainsbury’s performing well following its re-launch. 

General merchandise and clothing business also continues to grow at over twice the rate of food, the supermarket said.

Sainsbury’s has re-launched its Tu clothing brand, with a design-led collection, now available in nearly 400 stores; and has invested in displays and easier to navigate floor layouts. 

During the quarter Sainsbury’s opened 31 convenience stores and five new supermarkets.

King said: “Although we are starting to see encouraging signs in key economic indicators, our customers’ approach to savvy shopping, which started at the beginning of the downturn, has persisted and continues to help them to Live Well for Less. By continuing to focus on high quality, unique and innovative own-brand products we are ideally placed to perform well coming into the key Christmas period.”