Sainsbury’s News Update: Convenience Stores Give Sainsbury a Boost
Sainsbury’s News Update: The food giant has seen another rise in its sales for the latest trading quarter fueled by online sales and convenience stores.
News from the supermarket said that the like for like sales that did not include sales of fuel has risen by two per cent in the trading quarter to the twenty eighth of September of this year. However the Chief Executive of Sainsbury’s Justin King said that although these signs were certainly encouraging the trading climate was still very tough. He did say that the slight rise was encouraging for the future of the UK economy overall.
At the same time as Sainsbury’s announced their results, Tesco also reported their results for the quarter that showed them suffer a twenty three and a half per cent loss in the first half of the financial year.
The online sales division of Sainsbury’s rose at a rate of fifteen per cent in the second financial quarter and over the same period sales from the company’s convenience stores rose by twenty per cent. In the grocery sector Sainsbury’s have a market share at just over sixteen and a half per cent and said that they felt that part of the financial success they had achieved had been due to their brand matching initiative and the growth in sales of their own brand products.
In a recent report market researcher Kantar Worldpanel reported that the store had been the only one of the big four UK supermarkets to increase its market share over the last financial year.
An equity analyst at Hargreaves Lansdowne Stockbrokers, Keith Bowman commented that Sainsbury’s continued to benefit from its efforts to be UK focused and to offer quality and value to their customers. He said that the fact that Sainsbury’s had kept itself at arms length from the well known discount supermarkets had been reassuring to its customers as the loyal Sainsbury’s customer felt happy to reward themselves with the occasional smaller quality treat that they found in the shop. He added that spending on larger priced items remained restrained.
Sainsbury’s News Update
It is thought that the online and the convenience options offered by Sainsbury’s were also contributing factors to their success as they offered plenty of choice to customers who were feeling the pinch. The area that sells clothing and other household and home office goods has also made a strong showing while shares have held their own on the stock exchange.
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