Sainsbury’s posts 1.7% like-for-like sales growth and record market share

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by Sainsbury's: fastest growing core own label brand

by Sainsbury’s: fastest growing core own label brand

Sainsbury’s has posted a 1.7% increase in like-for-like sales in the first half and a record market share, driven in part by increased penetration of its own label ranges.

In the 28 weeks to 29 September 2012, total sales rose 4% and enabled Sainsbury’s to achieve a 16.7% market share – its highest for almost a decade. Underlying profit before tax increased 5.4% to £373m.

Justin King, chief executive, said: “Our share of the grocery market is the highest for almost a decade at 16.7%, with 31 consecutive quarters of like-for-like sales growth. We continue to succeed by remaining focused on delivering quality products, best-in-class service and value for our customers, without compromise. Brand Match, Nectar and our highly targeted coupon-at-till all reinforce our price competitiveness. 

“Whilst the wider economic situation remains challenging, we are well positioned to help our customers Live Well For Less. Our long-standing consistent strategy, combined with our customer insight and strong value-driven culture, will continue to deliver for customers, colleagues and shareholders.” 

According to Sainsbury’s, its own brand penetration is increasing at a faster rate than any other major supermarket as it continues to invest in ranges.  

Sales of its core by Sainsbury’s products are reported to be increasing at the strongest rate in recent years and it is the fastest growing mainstream own-brand range in the UK.  

The Taste the Difference range grew by nearly 10% and continues to outperform the premium private label market, said Sainsbury’s.

Over half its customers buy into the label and over 60% also buy into the basics range, which is reported to be the second biggest selling supermarket value brand.     

Sainsbury’s is expanding its convenience store business by one to two stores each week and is reported to be enjoying almost 20% year-on-year growth. 

In the first half of the year it opened 49 new stores taking its convenience store total to 487.  

Sainsbury’s revealed it is now introducing an improved fresh food offer to existing Local stores. According to the company, 12 convenience stores were refurbished in the first half, resulting in a good sales uplift. 

Online grocery sales also increased by more than 20% in the half, driven primarily by new customers, Sainsbury’s said.

Online grocery orders are reported to regularly exceed 165,000 a week with 96% coverage in the UK.  

In general merchandise, more than half Sainsbury’s customers opt to collect their orders via our Click & Collect service, which is available in 946 stores. 

The supermarket has launched mobile versions of its grocery and general merchandise websites and is trialling Mobile Scan & Go, technology that lets customers scan items as they shop using their iPhone or Android phone and pay without unloading their trolley or basket at the till.