Sainsbury's Local

Sainsbury’s half-year results have been lifted by convenience, online and own label

Strong growth in own-label, convenience and online has helped Sainsbury’s record like-for-like sales growth of 1.4%, excluding fuel, for the first half of the year.

In a trading update released this morning, the supermarket also reported a 4% hike in total sales for the six months to 28 September.

For the second quarter covering the 16 weeks to 28 September, like-for-likes rose 2% excluding fuel, with total sales up 4%.

Sainsbury’s said own-label sales continued to grow at more than twice the rate of branded sales. Its premium range Taste the Difference was “growing particularly strongly”.

Its online grocery business, which Sainsbury’s revealed on Monday had broken the £1bn sales barrier, grew by more than 15% during the quarter, while its convenience business grew 20% year-on-year. General merchandise and clothing grew at more than twice the rate of food.

It also opened 31 convenience stores and five new supermarkets during the quarter.

And the retailer said it was “delighted” to have won Store of the Week on The Grocer 33 for 10 of the 16 weeks during the quarter.

“We have delivered strong sales over the quarter, continuing to outperform the market in what remains a tough retail environment,” said CEO Justin King.

“We are the only major supermarket to be growing market share. This comes during a quarter in which we also lapped some of our strongest performance during the Paralympic Games last year.”

He added: “Although we are starting to see encouraging signs in key economic indicators, our customers’ approach to savvy shopping, which started at the beginning of the downturn, has persisted and continues to help them to Live Well for Less. By continuing to focus on high quality, unique and innovative own-brand products we are ideally placed to perform well coming into the key Christmas period.”