Sainsbury’s has secured its highest market share for a decade following 33 consecutive quarters of like-for-like sales growth.
Announcing preliminary results for the 52 weeks to 16 March 2013, Sainsbury’s said it had outperformed the market, lifting its share to 16.8% from 16.6% a year ago.
Sales, including fuel, rose 4.5% to £23.3bn. However, profits fell 1.4% to £788m.
The supermarket also confirmed it will pay Lloyds Banking Group £248m for the remaining 50% of Sainsbury’s Bank* it does not already own.
On food, Sainsbury’s said its own brands are a key driver of growth and loyalty. Own-brand is reported to be outperforming the market, as well as many branded lines, with the core by Sainsbury’s range accounting for nearly 40% cent of sales.
Sainsbury’s said sales of general merchandise and clothing continue to grow at more than twice the rate of food over the year.
By channel, Sainsbury’s Locals are reported to account for nearly a third of the UK’s convenience market growth with sales of over £1.5bn and year-on-year growth of over 17%. Annual sales in the online groceries business are reported to be worth nearly £1 and growing at around 20%.
Justin King, chief executive, said: “Our focus on helping our customers Live Well For Less is delivering good growth in sales and profit. Our key points of difference, such as the best quality own-brand, Nectar, Brand Match, coupon-at-till and industry leading service, are recognised by our customers.
“We continue to invest in offering customers choices of how they shop with us, bringing our food, clothing and general merchandise to more customers.
“Our decision to take full ownership of Sainsbury‟s Bank will add further momentum to our strategy of developing complementary channels for the benefit of both customers and shareholders.
“Whilst we see no near term change in the current economic situation, we remain confident that by continuing to invest in our long-standing strategy and by understanding and helping our customers, we are well positioned for future growth.”
*FIS, a leading provider of banking and payments technology, has been selected by Sainsbury’s Bank as the bank’s technology partner for all its retail banking operations. Under the terms of this strategic multi-year arrangement, FIS will provide real-time core banking and back-office processing support via an outsourced model on behalf of Sainsbury’s Bank.