Sainsbury's reports 'solid start' to the year in Q1 trading results

Sainsbury's has reported on Q1 trading, covering the 12 weeks ended 4th June 2016.

The retailer claims it has had a 'solid start to the year with like-for-like transaction growth across all channels'.

- Total Retail sales up 0.3 per cent (excl. fuel), down 0.1 per cent (inc. fuel)

- Like-for-like Retail sales down 0.8 per cent (excl. fuel), down 1.0 per cent (inc. fuel)

- Like-for-like transaction growth across all channels

See the full publication here. 

Mike Coupe, Chief Executive, said:

“We have made a solid start to the year with like-for-like transaction growth across all our channels and total volume growth. Customers continue to shop with Sainsbury's, knowing we will deliver on our commitment to provide great quality products and services at fair prices, whenever and wherever they wish to shop.

“Sainsbury’s is well-positioned. Our core food business offers customers choice, quality and a clear value proposition. General merchandise and clothing continue to perform well with good sales growth across both businesses, and we continue to see encouraging results from Sainsbury’s Bank, a significant opportunity for long-term growth.

“Market conditions remain challenging. Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future. However, we are confident that our strategy to be a trusted multi-channel, multi-product and services retailer is delivering and will enable us to continue to outperform our major peers.”

Source : J Sainsbury
www.j-sainsbury.co.uk

Analyst View

Connor Campbell, a senior market analyst at www.spreadex.com gave us his view on how this will affect the markets going forward:

"Having had such a traumatic time of it in the past 6 weeks, a period which saw its stock plunge from £2.88 to £2.46 on the back of weak full year figures, news of a CMA investigation into the Home Retail Group acquisition and its worst drop in sales for over a year according to Kantar Worldpanel, Sainsbury’s bounced back this Wednesday with its Q1 results. Rising over 2.5% Sainsbury’s saw like-for-like sales fall 0.8% for the 12 weeks to June, better than the 1.2% slide seen in the 12 weeks to May 22nd, alongside a 0.3% jump in total group sales."

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