Supermarket chain operator Sainsbury(J) Plc (SBRY.L,JSAIY.PK, JSNSF.PK) on Wednesday reported an increase in both total sales and like-for-like sales for the second quarter. However, it expects market growth to slow in the coming months due to reduced inflation.
In a trading statement for the 16 weeks ended October 3, the company said total sales for the second quarter rose 3.2%. Excluding fuel, second-quarter sales increase was 6.8%.
In June, the company reported a total sales rise of 3.2% for the 12 weeks to June 13, 2009, whereas ex-fuel, sales increased by 7.6%.
Like-for-like sales for the second quarter grew 1.3%, and increased 4.6% excluding fuel. Excluding fuel and VAT, like-for-like sales for second quarter was up 5.4%. The company noted that the change in the rate of VAT from December 1, 2008 reduces like-for-like sales growth by 80 bps for the second quarter.
In the first quarter, like-for-like sales grew by 2.5%. Like-for-like sales ex-fuel were up by 7.0%, while ex-fuel and VAT were up by 7.8%.
The 140-year-old company noted that weekly transactions are over 18.5 million now, up 800,000 from last year. According to the company, its non-food ranges are performing well and are growing at nearly three times the rate of food.
Commenting on the online service, Justin King, chief executive of the company, said, "In July we launched our non-food offer online and we are pleased with the early progress this new customer channel has achieved. Our online food home delivery service saw sales growth of 20 per cent."
During the quarter, the grocer opened 12 convenience stores, bringing the total opened in the first half of the year to 19. Sainsbury said it is on track to achieve its target of opening 50 additional convenience stores this year.
The company opened 19 new supermarkets, including 14 Somerfield and Co-operative supermarkets acquired earlier this year, bringing the first-half supermarket openings to 24. The company added that these are performing ahead of expectations. Sainsbury said it is on track to grow space by 15% in the two years to March 2011.
"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. Recruitment for our 20,000 Christmas temporary colleagues begins next week and we are well on track to achieve our target of 500 places on our apprenticeship schemes for bakers, butchers and fishmongers," King added.
The company said its performance in the first half continues to show good progress. However, it expects market growth to slow in the coming months due to reduced inflation, but is confident of going forward due to "the universal appeal of our focus on quality and value."
On Tuesday, retail chain Tesco Plc (TSCO.L) announced that its sales excluding VAT for the half year increased 9.3% to GBP 27.78 billion from GBP 25.44 billion a year ago. The company's sales including VAT grew 8.3% to GBP 30.4 billion. At constant exchange rates, sales increased by 6.9%.
SBRY.L is currently trading at 310.60 pence, down 12.30 pence or 3.81%, on 5.55 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.