Like-for-like sales in Sainsbury's Q3 trading period have risen 0.2% as the British supermarket chain recorded its 'best Christmas ever'.
Late last year, Sainsbury's overtook Asda and moved into the number two spot for the largest supermarket in the UK, second to Tesco. Financial forecasts predicted that it would fall after 35 successive periods of expansion, and chief executive Justin King said the 14 weeks to 4 January had been a ‘very tough sales environment’.
But in the 14 weeks to 4 January, like-for-like sales, stripping out the effect of new stores, rose 0.2% excluding fuel.
The news was better than expected, and gave the supermarket a 36th consecutive quarter of like-for-like sales growth.
The statement boosted Sainsbury's share price by 3% in early trading today.
Meanwhile, analysts believe that the recent trend of discounters in the UK outperforming the traditional chains over the holiday season looks set to continue.
Aldi, Lidl and Waitrose are all expected to have won market share while Tesco is likely to have been the biggest loser, according to analysts at Wall Street sell-side research firm Bernstein, who predict the UK's biggest supermarket chain's share of UK spending on groceries would drop nearly 1% in the 12 weeks to 5 January.
They also say that upmarket chains like Marks & Spencer and Waitrose are expected to have performed well. Sales jumped 26.6% in the week to 28 December at Waitrose.
In a statement released by Bernstein, senior analyst Bruno Monteyne said that the UK's largest grocer, Tesco, "find themselves stuck in the middle, being squeezed from both sides by the discounters and the quality retailers, who have the more desirable distinctive retail offers. Tesco's strategy to deal with this, i.e. to move upmarket, is not working and they are continuing to lose market share."
© 2013 - European Supermarket Magazine by Enda Dowling
