Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 12°C

ESTD 1874 Search

UK: Sainsbury’s half-year profits up 5% to £373m

09:41 14 November 2012

Sainsbury

Sainsbury's today reported 5% growth in first-half profits

SAINSBURY’S continued to show its rivals a clean pair of heels today after it reported a 5% rise in half-year profits to £373million.

shares

The supermarket giant, which recently achieved its highest market share for a almost a decade at 16.7%, achieved like-for-like sales growth of 1.7% for the six months to September 29.

With competition fierce and households struggling to make ends meet in the economic crisis, Sainsbury’s said it had printed nearly 250 million Brand Match money-off coupons since the scheme’s launch a year ago.

Chief executive Justin King said the company’s focus on product quality and service standards also continued to pay off.

The performance contrasts with lacklustre results from Tesco, whose profits slid 12% to £1.1 billion last month, while in recent days Morrisons, Britain’s fourth largest supermarket, said like-for-like sales fell 2.1%.

Sainsbury’s, which has more than 1,000 stores, said it is 85% of the way through the launch of 6,500 new or improved By Sainsbury’s products, while its general merchandise and clothing business is growing three times faster than its food business in a drive for market share.

It also said its online business continued to perform strongly, growing at over 20% with online grocery orders regularly exceeding 165,000 a week.

During the half year Sainsbury’s opened five supermarkets and 49 convenience shops and extended three stores.

Mr King, who described the Brand Match scheme as the most comprehensive tool in the market, expects Christmas to be competitive but said the company’s Nectar loyalty card scheme should help it be more targeted with its promotions.

He said: “For us it is about doing it one customer at a time, giving them what they really want rather than general blanket promotions.”

Kate Calvert, retail research analyst at Seymour Pierce, said yesterday’s rising inflation number was a reminder that consumer spending would remain under pressure, with increased energy prices this winter yet to come.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, added that although the medium-term outlook was on a knife edge, the update provided some comfort that Sainsbury was maintaining its positive trajectory.

But he added that Tesco was in the midst of a substantial investment programme and remained the market leader by some distance.

shares

0 comments

Ransomes Jacobsen operations director Simon Rainger addresses staff as the company's last Ransomes Commander mover leaves the production line.

Staff at Ipswich-based turf maintenance machinery maker Ransomes Jacobsen have marked the end of an era, with the last Ransomes Commander mower having rolled off the production line.

Charles Manning on the new patio area at Bears Boutique Bar and Bowling in Star Lane, Ipswich

Businessman Charles Manning is pleased with the way his Bears bowling bar and grill is fitting into the entertainment offer in Ipswich – and with the business community.

The rate of growth in the UK economy rebounded during the second quarter of 2015, but the manufacturing sector continued to struggle, according to official figures.

UK growth bounced back in the second quarter of 2015 as gross domestic product (GDP) increased by 0.7%, according to official figures.

Artist's impression of how an office development in Sheepen Road, Colchester, could look

A council has managed to secure tenants for a new office development before work has even begun on building it.

Barker Gotelee has welcomed Lucy Underwood, conveyancing assistant, Linda Crawford, solicitor, Nicky Sunderland. trust and estate planning practitioner, and Lisa Hobbs, junior secretary.

Ipswich-based law firm Barker Gotelee has welcomed four new employees across its expanding business.

A Ryanair aircraft atStansted Airport.

Budget airline Ryanair today reported a 25% jump in earnings for the first quarter of its new financial year.

Alton Towers in Staffordshire.

Alton Towers owner Merlin expects annual earnings for its theme parks business to drop by as much as £47million this year following last month’s rollercoaster crash.

Manufacturers in the East of England are in confident mood, according to a new report.

Manufacturers in the East of England are helping to lead the way in exports and business confidence, according to a new report

Tom Gillman of Crafted.

Mediterranean Shipping Company, which has its UK head office in Ipswich, has launched a new global website, designed and built by locally-based digital agency Crafted.

IPRS Group celebration at Wherstead Park, Ipswich

Company celebration is a boost for charities

Most read

Most commented

Topic pages