Sainsbury’s rings up first sales increase for two years

Published: Tuesday 15th March 2016 by The News Editor

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Supermarket Sainsbury’s has stepped up its performance after posting its first quarterly like-for-like sales growth for more than two years.

Britain’s second-biggest grocer said like-for-like retail sales excluding fuel rose 0.1% in the fourth quarter, compared with a fall of 0.4% in the third quarter.

The uptick in sales is a significant boost for the Big Four grocer, coming after sales dropped 1.9% a year earlier amid an ongoing supermarket price war .

The sales figures come just days ahead of the March 18 deadline for bettering its offer for Argos owner Home Retail Group.

Sainsbury’s said it would create a ”world-leading” retailer bigger than rivals John Lewis and Amazon UK when it tabled an improved £1.3 billion offer for Home Retail in February.

Since then, South African retailer Steinhoff has attempted to gatecrash the supermarket’s cash and shares deal, with a £1.4 billion offer.

Chief executive Mike Coupe said the supermarket had delivered a “strong performance” in the fourth quarter, as it recorded like-for-like sales and volume growth while maintaining its market share.

He added: ” We are progressing well with our quality investment in 3,000 own-brand products.

“The new year is traditionally a time when customers focus on healthy eating and to cater for this demand we launched a number of vegetable-based product innovations including boodles (butternut squash noodles) and courgetti (spiralised courgette) which are proving extremely popular with our customers.”

Published: Tuesday 15th March 2016 by The News Editor

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