Supermarket chain Sainsbury(J) Plc. (SBRY.L, JSAIY.PK) Wednesday reported close to 4 percent increase in sales for the third quarter, with a record-breaking Christmas. The British retailer increased its market share, despite a tough retail environment.
Sales grew 3.9 percent in the quarter, and the growth was 3.3 percent when fuel was excluded. Like-for-like sales advanced 1.5 percent and was up 0.9 percent excluding fuel.
Sainsbury noted that it had a record-breaking Christmas, reflecting 32 consecutive quarters of like-for-like growth. The week before Christmas turned out to be the strongest trading week ever for the company and customer transactions surpassed 27 million.
The hour between 12 pm and 1 pm on December 23, 2012 generated 16 million pounds in sales. Sainsbury experienced its best ever Christmas Eve, at both supermarket and convenience stores, with over 100 million pounds of sales. Convenience grew over 17 percent in the quarter, and online business grew more than 15 percent.
Justin King, Chief Executive, said, "This Christmas we have helped more customers than ever to Live Well for Less, delivering another quarter of good sales in a challenging retail environment, increasing market share. Like-for-like sales excluding fuel were up 0.9 per cent, which was on top of a very strong Christmas last year, giving a two year like-for-like growth figure of 2.9 per cent."
The company's own-brand products saw strong growth in the quarter, with sales growing at three times the rate of brands. Sales of own-brand champagne and prosecco increased at over 15 percent year-on-year and orders for Christmas food ordering service climbed 25 percent year-on-year.
Clothing performed particularly well in the quarter, growing over 10 percent, driven by investment in core ranges across women, mens and kids and promotions. Strong sales growth was witnessed in small electricals, such as toasters and kettles, that grew over 24 percent, and cookware growth was nearly 15 percent year-on-year.
Looking ahead, Justin King said, "We expect the challenging economic backdrop to persist, with customers looking to re-balance their household budget after the festivities and so spending cautiously in the first few months of 2013." Yet, King said the retailer is positioned to perform well over the next quarter.
SBRY.L closed up 2.2 percent at 339.00 pence on Tuesday.
For comments and feedback: editorial@rttnews.com