11th Jan 2007 07:01
Sainsbury(J) PLC11 January 2007 11 January 2007 Third Quarter Trading Statement for 12 weeks to 30 December 2006 Good Christmas sales performance, recovery on track • Total sales for quarter three up 5.8 per cent (6.8 per cent excluding fuel)• Like-for-like sales for quarter three up 4.2 per cent (5.0 per cent excluding fuel)• Eighth consecutive quarter of like-for-like sales growth• Strong delivery of Christmas offer; over 20 million customers in Christmas week Justin King, chief executive, said: "We are pleased to have continued our goodsales performance in the third quarter of the year and achieved record sales inthe week before Christmas, serving over 20 million customers. Like-for-likesales, excluding fuel, were up 5.0 per cent against a strong third quarter lastyear. Achieving our eighth consecutive quarter of like-for-like sales growthdemonstrates that our recovery remains firmly on track. "Our grocery inflation in the third quarter was 1.7 per cent, on the back ofrising energy and commodity prices evident throughout the grocery market andcost increases in fresh produce. We are committed to retaining the greatprogress we have made in our price position and we will ensure we remaincompetitive. "During the festive period our colleagues worked hard ensuring customersexperienced great service and were able to buy the quality, fresh, healthy andtasty products they wanted for Christmas, in store and online. Christmas weekonline sales this year increased by over 60 per cent. Taste the Difference(TTD), our premium own label range, experienced sales growth of around 20 percent, and we sold twice as many British organic and TTD turkeys compared to lastyear. "We are passionate about helping our customers shop, cook and eat in a healthconscious manner. The Wheel of Health is now on the front of over 4,000products and provides customers with accurate and easy to read information aboutthe nutritional content of the food they are choosing. Customers have told usthat they prefer using multiple traffic light information as the colour codedfront of pack summary makes it easier for them to make quick decisions aboutproduct nutrition when in store. Our sales data and customer feedback showscustomers are using this information to choose food that forms a better balanceddiet. "We were delighted to win 13 out of the 25 categories at the Quality Food Awards(3) in November. A further seven of our products were highly commended. Inaddition, our TTD Vintage Champagne achieved overwhelming sales growth atChristmas after winning the Which? Magazine blind taste test (4). Thesesuccesses once again recognise the focus we have placed on ensuring our productsare sourced with integrity and made from the highest quality ingredients. Aspart of our commitment to Fairtrade farmers and their communities, we announcedin December that we will become the first UK retailer to convert our entirebanana range to be 100% Fairtrade sourced. Our share of the entire Fairtradebanana market will be larger than all the other major supermarkets in the UKcombined. "In the lead up to Christmas we opened eight new supermarkets, including fiveacquired from Somerfield, completed 11 extensions and refurbished a furtherseven supermarkets. Our complementary non-food range was introduced in to anadditional 12 supermarkets. We also opened four new convenience stores andrefurbished or converted another 14. Customer response to these projects hasbeen very positive and sales growth has exceeded our initial expectations. "Over the last 18 months there has seen a very significant increase in thevolume of product being managed through the supply chain. As a result we willbe opening a new distribution centre in Northampton this summer and we areimplementing a number of changes to our existing centres that will increasecapacity and drive operating efficiency. "Traditionally the next few months are particularly price competitive ascustomers tighten their belts, and we expect this year to be no different. Weare continuing with our plans to ensure we remain competitive. We are investing£70 million in the customer offer, reducing prices on another 1,000 products andstrengthening our promotions with 200 half price offers. We are pleased withour progress over Christmas and the results achieved give us good momentum todeliver sales growth as we enter the fourth quarter." Enquiries: Investor Relations MediaLynda Ashton / Elliot Jordan Pip Wood+44 (0) 20 7695 7162 / 4931 +44 (0) 20 7695 6127 Notes (1) 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. (2) Sales growth is detailed below: 2006/07 Q1 Q2 H1 Q3 Sales growth including fuel (%)Total 8.1 7.6 7.8 5.8Lfl 7.1 6.5 6.8 4.2 Sales growth excluding fuel (%)Total 6.7 8.0 7.5 6.8Lfl 5.7 6.6 6.2 5.0 (3) The Quality Food Awards, organised by Checkout and Independent RetailNews, were launched in 1979 as a way of rewarding, and encouraging, thedevelopment of high quality food products in UK grocery. (4) Which? Magazine report of the blind taste test results of sixprofessional tasters, published 30 November 2006. (5) A conference call will take place at 8.45 GMT. 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 15January 2007. (6) Sainsbury's will announce its fourth quarter trading statement for the 12weeks to 24 March 2007 on 28 March 2007, and its preliminary results for the 52weeks ending 24 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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