British retailer Sainsbury’s has performed very well in its first quarter, with a 2.3 % like-for-like turnover growth – thereby “outperforming the market” in merchandise and clothing.
Online surge
As one of the Big Four (alongside Tesco, Morrisons and Asda), supermarket chain Sainsbury’s performance is always an indication of how the very competitive British market is holding up, considering the barrage coming from discounters Aldi and Lidl. Grocery sales went up 3 % and the number of transactions rose by 1.9 % over the quarter.
CEO Mike Coupe felt the “differentiated strategy” helped the company boost sales, with “strong food sales where we have invested in product innovation”. The Produce category performed “particularly well, outperforming the market with volume growth of over one per cent.”
Argos helped the chain’s online growth considerably, up 8 %. The chain’s Fast Track delivery service grew 36 % and collection services even grew 64 %, thanks to the hot weather. Coupe believes the company is ready for the future: “Our strategy is delivering and we are well placed to navigate the external environment.”
