Bargain hunters boost Sainsbury's sales
SUPERMARKET chain Sainsbury's today announced it had bucked the credit crunch trend by boasting a 60 per cent rise in sales of its basic range.
The high-street giant revealed its 'Switch and Save' campaign in January - which encourages shoppers to buy Sainsbury's basic range over branded products - had attracted bargain hunters, helping the firm to gain healthy fourth-quarter sales.
Overall the supermarket reported a 6.2 per cent rise in like-for-like sales, excluding fuel, in the 11 weeks to March 21.
Today chief executive Justin King said the better than expected sales growth represented a “resilient” performance from the group.
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We are seeing some significant changes in the mix of products customers are choosing to buy
He said: “We are seeing some significant changes in the mix of products customers are choosing to buy."
His comments underlined the current intense competition in the discount sector with Tesco, Morrisons and Asda all jostling for position against the likes of Aldi and Lidl as shoppers look to make savings.
Sainsbury’s also played up its ethical credentials after becoming the first major retailer to stop selling eggs laid by battery hens and increasing its range of higher welfare pork.
Meanwhile the firm gained a sales boost from its support for charity Comic Relief, which added 0.3 per cent to like-for-like sales over the quarter.
During the run-up to Red Nose Day two weeks ago, the supermarket attracted more than 19 million customers, its highest ever outside the Christmas period.
Sainsbury’s added that non-food sales maintained strong growth, with its Tu clothing range now available in 290 stores.
Its online home shopping service saw sales growth of more than 20 per cent over the quarter.
Mr King added he expects the current economic environment to remain challenging, but said the supermarket was “well positioned to continue its good progress”.
Sainsbury’s has also expanded its store portfolio after agreeing to buy 24 stores from the Co-operative Group in an £83 million deal earlier this month.
