20th Jun 2007 07:01
Sainsbury(J) PLC20 June 2007 20 June 2007 First Quarter Trading Statement for 12 weeks to 16 June 2007 Highlights • Total sales for first quarter up 5.7 per cent (6.7 per cent excluding fuel) • Like-for-like sales for first quarter up 4.4 per cent (5.1 per cent excluding fuel) • Tenth consecutive quarter of like-for-like sales growth Justin King, chief executive, said: "We have made a strong start to the thirdyear of our Making Sainsbury's Great Again plan. In the first quarterlike-for-like sales excluding fuel were up 5.1 per cent, our tenth quarter ofcontinuous sales growth. This is particularly pleasing as the quarter includedsome very tough comparatives in the final few weeks driven by the football worldcup and the very warm weather last June. Both of these factors also impact thequarter two comparatives. "Our ability to control stock levels and improve availability during anexceptionally warm April followed by a very wet May highlights the improvementswe've made to our supply chain systems and in store operations over the pastcouple of years. "Total sales growth continues to be driven by our strong quality food offer.Our ongoing growth in market share (2) reflects the significant improvementswe've made to the shopping experience of our customers over the first two yearsof our recovery. Although small by comparison, non-food sales continue to growin line with our expectations as we continue to develop this offer. "Customers value fresh, healthy and tasty products which have been sourced withintegrity. These factors are of increasing importance to consumers today and wecontinue to see growth in sales of organic and Fairtrade products. Customersunderstand that they can buy quality food at fair prices at Sainsbury's asdemonstrated by us selling Fairtrade bananas at the same price our competitorssell conventional bananas. By August we expect that every banana sold inSainsbury's will be Fairtrade. "In April our first 'Make the difference' day raised the issue of plastic bagusage. Our 'Make the difference' programme is based on the principle thatindividual contributions can be combined to effect big change. On the first twodays of the programme we issued around ten million free 'bags for life', savingan estimated 520 million standard disposable bags this year alone. "In May we completed the third year of our Active Kids programme. Customerscollected vouchers towards new sports equipment for schools, Scouts and Guidegroups. We have donated over £34 million worth of sports equipment over twoyears and this year's programme will add substantially to that total. "The operating environment remains competitive, which has been reflected inrecent activity across the market. We have reduced prices on another 4,500products since April and invested over £450 million in improving the customeroffer since March 2005. We will continue to maintain our competitive priceposition with our commitment to invest 100-150 basis points annually in thecustomer offer. "Our sales and operational performance this quarter represents continuedprogress towards our Making Sainsbury's Great Again targets. As outlined at ourPreliminary results in May, the business is in a strong position to grow and wehave set out new plans for further sales and space growth. These provideSainsbury's with substantial opportunity for further development of the businessand value creation for our shareholders." Enquiries: Investor Relations MediaElliot Jordan Pip Wood+44 (0) 20 7695 4931 +44 (0) 20 7695 6127 Notes (1) Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable law, regulation or accounting standard, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise. (2) As measured by TNS on a 12 weekly basis to 20 May 2007 compared with the previous year. (3) Sainsbury's will announce its second quarter trading results for 16 weeks to 6 October 2007 on 10 October 2007. (4) A conference call will take place at 8.45 BST. To listen to the audio webcast we recommend that you register in advance. To do so please visit www.j-sainsbury.co.uk prior to the event and follow the on-screen instructions. To view the transcript of the conference call, go to www.j-sainsbury.co.uk on 22 June 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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