Sainsbury’s outperforms Tesco

Sainsbury’s says “strong” sales and profits in the second quarter were driven by its proposition that offers “great value without compromising on high quality”.

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Like for like sales, which exclude stores open for less than a year, increased 5.4% for the 16 weeks to 1 October. Total sales increased 7.8%.

The figures are in line with the half-year results, and like for like sales for the six month period increased 5.1%, while total sales increased 7.6%.

Sainsbury’s growth comes as Tesco reports a 0.5% fall in like for like sales for the first-half.

Both supermarkets are ramping up their marketing activity as they vie to offer shoppers the best value, after Tesco launched its Big Price Drop initiative last month.

Sainsbury’s recently overhauled its marketing strategy and has introduced the “Live Well For Less” strapline in a bid to better communicate its “unique combination of high quality … and commitment to delivering value”.

Justin King, Sainsbury’s CEO, says: “We have delivered a good sales performance in a tough consumer environment. Our market-leading petrol offers, combined with strong promotions and competitive pricing on branded goods, ensure our customers can enjoy great value without compromising on the high quality Sainsbury’s fresh food and own label products they love.

“Through ’Live Well For Less’ we are demonstrating to customers that they need look no further than Sainsbury’s to solve the challenges of their grocery shopping. We expect the market environment to remain very competitive for the foreseeable future but we are confident in our ability to grow by doing a great job for our customers.”

King adds that both Sainsbury’s premium “Taste the Difference” range, which was re-launched last year, and its Basics range saw strong growth during the period. It is currently rolling out a relaunched “by Sainsbury’s” core range and promises to offer customers “the same or better” quality than branded products, at 20% lower prices.

Sainsbury’s convenience and non-food businesses are growing ahead of the core supermarket business.

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