Soaring Sainsbury's

J Sainsbury has announced its best growth in sales in over 10 years. Total sales increased by 3.4% in the post–Christmas quarter, while like-for-like sales improved by 7% after adjusting for fuel and VAT

The Sainsbury’s results were pushed ahead by a following wind of inflation, cheap food and Sainsbury’s Comic Relief sponsorship. Sainsbury’s sold 6.8m ‘red noses’ during Comic Relief week, pulling in 19m customers to its stores and driving sales up 0.3%.

City analysts reckon Sainsbury’s could be heading for a period of sustained revenue performance.

Higher food prices boosted Sainsbury’s, although inflation only increased sales by 3% as cash-strapped customers snapped up lower-priced products, with Sainsbury’s ‘Basics’ range delivering a 60% increase in sales over the quarter. Yet sales of Sainsbury’s higher-priced products also delivered robust increases. This trend is noticeable in meat, where sales of cheap cuts are soaring, while high-minded customers are buying more ethically-sourced pork and chicken. Those buying cheap cuts have honed in on pig trotters and beef shins, while liver and kidney sales have more than doubled.

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