British Supermarket chain Sainsbury(J) Plc. (SBRY.L, JSAIY.PK) Tuesday reported growth in sales and like-for-like sales for the fourth quarter, despite a tough retail environment. The company noted that its general merchandise and clothing business is growing at nearly three times the rate of food.
The retailer's weekly customer transactions increased by over 800,000 year-on-year. The firm also achieved target of around 5 percent gross space growth for the year.
Total sales climbed 7.1 percent for the quarter and rose 6.3 percent excluding fuel.
Like-for-like sales improved 4.2 percent in the quarter. Excluding fuel, like-for-like sales advanced 3.6 percent. For the year, like-for-like sales climbed 2.1 percent and grew 1.8 percent, excluding fuel.
Justin King, CEO, said, "We have delivered strong sales in the fourth quarter, increasing market share and outperforming in what remains a tough retail environment...Valentine's Day and Mother's Day were both particularly strong this year, and we closed the quarter with a very successful Red Nose Day, presenting a record cheque for £10.5m on behalf of customers and colleagues.''
Sainsbury said its convenience business is growing at over 18 percent year-on-year, driven by new space and strong like-for-like sales growth. Groceries online increased sales by nearly 20 percent year-on-year. The firm now regularly serves over 190,000 customers a week.
The company added 163,000 square feet of new space, comprising three supermarkets and 19 convenience stores, in the quarter. Over the full year, the company added 14 supermarkets, eight extensions and 87 convenience stores.
With the horse meat scandal haunting many retailers, Sainsbury said its fresh chicken has been 100 percent British since 2003, and all of its fresh beef is sourced from the UK and Ireland.
''...we have routinely carried out DNA testing on our products for over ten years...The issues experienced by the industry over the last quarter underscore the importance of our detailed understanding of our supply chain,'' King added.
The company expects the challenging economic environment to continue through the coming year, but said it is well positioned to continue to outperform the market.
SBRY.L added 0.7 percent on Monday to settle at 365.20 pence.
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