British retailer Sainsbury's has reported a solid first half, with increases in both sales and profits. The grocery retail chain posted a 2.5 per cent rise in pre-tax profits for the period, with underlying profit before tax up 5.4 per cent to £373 million. Sales saw a 4.1 per cent boost (excluding fuel), while like-for-like sales (excluding fuel) up 1.7 per cent.
CEO Justin King said the retailer had achieved its highest market share for almost a decade, increasing to 16.7 per cent, with 31 consecutive quarters of like-for-like sales growth. He added that he expects the market to "remain challenging", forecasting similar like-for-like figures for the second half of the year.
Sainsbury's increased its selling space by 351,000 sq ft during the six months, with the opening of five supermarkets, 49 convenience stores and three extensions. The convenience format remains a "key area of growth" for the retailer. It opened 12 more stores this half than in the comparable period last year, as well as closing two branches and refurbishing 12. Net convenience space grew by 101,000 sq ft during the first half of the year, an increase of 9.8 per cent since the start of the year. King said the group is "on track" in its plans to open one to two new convenience stores per week.
The retailer cited its Brand Match initiative, and its Nectar loyalty card as important tools in reinforcing its price competitiveness.
King added, "Whilst the wider economic situation remains challenging, we are well positioned to help our customers Live Well For Less. Our long-standing consistent strategy, combined with our customer insight and strong value-driven culture, will continue to deliver for customers, colleagues and shareholders.”
© 2012 - ESM: European Supermarket Magazine
