Sales Increase Pushes Sainsbury Ahead of Rivals

Posted on 12 June, 2013 by MOVEHUT

Sainsbury will put rival supermarkets under more pressure today when it is expected to report a further increase in like-for-like sales.

Tesco, Britain’s largest retailer, reported a 1 per cent drop in like-for-like sales when it updated the market last week and Philip Clark, the chief executive, warned that his £1bn turnaround plan is taking time to take effect.

In contrast, the City expects Sainsbury’s to release its 34th consecutive quarter of like-for-like sales increase under the chief executive, Justin King.

Specialists at Sainsbury’s house broker, Morgan Stanley, have forecast that the supermarket will say like-for-like sales increased 0.6 per cent in the 12 weeks to June 8, although some specialists believe sales may have risen by as much as 3.5 per cent.

Growth of 0.6 per cent would be the supermarket’s slowest for more than three years. However Edouard Aubin, analyst at Morgan Stanley, said this would still demonstrate that Sainsbury’s was outperforming its rivals and any drop-off was due to the Queen’s Diamond Jubilee and an extra bank holiday falling in the same period in 2012.

He said: “While Q1 will likely mark Sainsbury’s softest like-for-like sales growth in over three years, we note that, unlike listed competitors Tesco and Morrisons, Sainsbury’s like-for-like sales remain in positive territory and that, quarter to date, Sainsbury’s has continued to gain market share

“Additionally, we note that Sainsbury’s outperformance was achieved despite limited promotional activity during the quarter.”

Mr King, who strongly denies speculation that he is preparing to step down, has breathed new life into Sainsbury’s since taking charge in 2004.

The retailer is enjoying exceptionally strong growth in non-food products, its Tu clothing range and own-brand food ranges.

It is also expected to venture into the commercial property market, once again,  by opening 50 new convenience stores in London and the South East this year.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme