Sainsbury's sees sales rise by 5.4%

12 April 2012

Supermarket group Sainsbury's has posted a 5.4% rise in second quarter sales as it kept up the pressure on market leader Tesco.

The firm said it performed well in "what remains a challenging consumer environment" but it warned that growth would slow in the future as inflation eases.

Sainsbury's said it now makes over 18.5 million transactions a week, up 800,000 year-on-year.

The like-for-like sales growth for the 16 weeks to October 3 excludes fuel and VAT.

Sainsbury's has seen its same-store sales growth slow from 7.8% in the first quarter. Total sales excluding fuel grew 6.8% in the last three months, compared with 7.6% earlier in the year.

This was despite the addition of 19 new supermarkets - 14 acquired from Somerfield and Co-operative - and 12 new convenience stores in the period.

The firm opened a total of 24 supermarkets in the first half and said these were performing ahead of expectations.

Openings included a 71,000 sq ft store in High Wycombe, the second of its stores with a mezzanine level, and a 68,000 sq ft store in West Belfast, the largest Sainsbury's in Northern Ireland.

Sainsbury's is still a long way behind Tesco in terms of market share, with 15.8% of the grocery sector in September compared with its larger rival's 30.9%, according to TNS Worldpanel. But it has outstripped Tesco in terms of sales growth in recent months, albeit from a much lower base.

On Tuesday Tesco said its like-for-like sales in the second quarter were up 3.1% on a VAT-adjusted basis. Tesco said total UK sales including petrol and VAT rose 2.8% to £20.7 billion in the first half to the end of August.

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