28th Mar 2007 07:03
Sainsbury(J) PLC28 March 2007 28 March 2007 Fourth Quarter Trading Statement for 12 weeks to 24 March 2007 • Total sales for quarter four up 6.6 per cent (7.8 per cent excluding fuel)• Like-for-like sales for quarter four up 4.9 per cent (5.9 per cent excluding fuel)• Second year of recovery plan completed with strong momentum Justin King, chief executive, said: "We have now completed the second year ofour Making Sainsbury's Great Again recovery plan and have delivered strong salesgrowth in our fourth quarter, the ninth consecutive quarter of growth.Like-for-like sales excluding fuel were up 5.9 per cent, slightly ahead of ourexpectations as we continued to grow market share in a strong market (1). Asexpected, grocery inflation continued throughout the quarter and was recorded at2.3 per cent. We continue to maintain our competitive price position andreduced prices on over 1,000 products in the quarter. "We provided customers with a strong product offer for key events such asValentine's Day and Mother's Day which drove the sales performance. Ourparticipation in Red Nose Day on March 16 accounted for an estimated 0.3 percent of our sales growth in the quarter and as a result of the generosity of ourcustomers and colleagues we were able to donate over £7 million to Comic Relief. "Our store extensions, new stores and refurbishments performed strongly duringthe quarter, exceeding our sales expectations. We opened five new supermarkets,including two replacement stores and one acquisition, as well as completing twoextensions. We also opened a net five new convenience stores. Additionally, werefurbished 11 supermarkets and added our complementary non-food range toanother five supermarkets. "Sales of Fairtrade products grew by 50 per cent during the quarter. We havenow converted 75 per cent of our bananas to Fairtrade as such products arebecoming an increasingly important part of the weekly shop for our customers.Fairtrade fortnight at the beginning of March enabled us to increase our focuson fairly traded products. During these weeks sales grew 150 per cent comparedto the previous year. "Consumer focus on eating a healthier and balanced diet is traditionallystronger in this quarter, following the Christmas period. Our 'Big 5 drive',launched in January, was designed to help people eat five portions of fruit orvegetables a day and over four weeks we gave away three million portions offruit and vegetables. Our Wheel of Health multiple traffic light labelling,first introduced over two years ago, has been added to our basics range and isnow on over 4,500 products. Customers have told us that the traffic lightsystem is the easiest way to make decisions about the food they buy. "Our third Active Kids programme launched in February. We have already donated£34 million of sports equipment since 2005 and this year Scouts and Girl Guidesjoin the 32,500 schools and nurseries across the UK that are accepting vouchers.We have added camping gear, cookery equipment and discounts on groupactivities such as abseiling and canoeing to the catalogue of rewards available. "Today we are announcing that we have renewed the contract for our participationin the Nectar customer loyalty programme. Customers value the rewards they areable to collect through this multi-partner loyalty scheme and the contractrenewal allows us to continue to improve our relationship with our customers.We're also broadening our relationship to enhance our ability to use the datafor the benefit of customers. "We are committed to delivering the Making Sainsbury's Great Again recovery planas announced on 19 October 2004 and believe this strategy is deliveringsubstantial value for our shareholders. As we enter the third year of the plan,we are confident that we can continue to build upon this recovery." Enquiries: Investor Relations MediaElliot Jordan Pip Wood+44 (0) 20 7695 4931 +44 (0) 20 7695 6127 Notes (1) As measured by TNS on a 12 weekly basis compared with the previousyear. (2) Certain statements made in this announcement are forward lookingstatements. Such statements are based on current expectations and are subjectto a number of risks and uncertainties that could cause actual results to differmaterially from any expected future events or results referred to in theseforward looking statements. (3) Sales growth is detailed below:2006/07 Q1* Q2 H1* Q3 Q4 H2 FY* Sales growth including fuel (%)Total 8.1 7.6 7.8 5.8 6.6 6.2 7.0LfL 7.1 6.5 6.8 4.2 4.9 4.6 5.7Sales growth excluding fuel (%)Total 6.7 8.0 7.5 6.8 7.8 7.3 7.4LfL 5.7 6.6 6.2 5.0 5.9 5.4 5.9 *Q1 Easter adjusted. First half total sales growth of 8.3%, including fuel.Full year total sales growth of 7.3%, including fuel. (4) A conference call will take place at 8.45 BST. To listen to the audiowebcast we recommend that you register in advance. To do so please visitwww.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 30March 2007. (5) Sainsbury's will announce its preliminary results for the 52 weeks ending24 March 2007 on 16 May 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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