SAINSBURY’S BECAME the only one of the Big Four supermarket chains to grow its market share over the last quarter after keeping the horsemeat scandal at bay.
The grocer’s total sales for the 10 weeks to March 16 jumped 7.1%, driven in part by a Food Standards Agency ruling that its beef products contained no trace of horsemeat, as well as strong performances from its multi-channel offerings of convenience stores and online retail.
Gaining market share during the period, the supermarket group saw weekly customer transactions grow by 800,000 per week, year-on-year, to a record high of 22.9 million.
Commenting on the better-than-expected growth, chief executive Justin King said Valentine’s and Mother’s Day sales both proved “particularly strong” this year.
Furthermore, he said heavy investment in the Sainsbury’s “supply chain and sourcing credentials” over many years, including investment in initiatives such as its Farmer Development Group, had reaped dividends and reassured customers of the authenticity and origins of its meat products during the recent horsemeat scandal.
“Our fresh chicken has been 100% British since 2003, all of our fresh beef is sourced from the UK and Ireland and we have routinely carried out DNA testing on our products over 10 years,” said Mr King.
“Our values are a long-term, strategic point of difference. The issues experienced by the industry over the last quarter underscore the importance of our detailed understanding of our supply chain.”
As a result, like-for-like sales at Sainsbury’s, excluding fuel, rose 3.6% compared to the same period the previous year well above the 2.3% expected by City analysts.
Including fuel, the like-for-like sales figure jumped 4.2%, while total sales, excluding fuel, rose 6.3% year-on-year.
During the 10-week period, Sainsbury’s continued to heap more pressure on market leader Tesco as its multi-channel strategy and convenience store businesses maintained considerable growth.
Driven by a combination of store openings and like-for-like sales increases, Sainsbury’s convenience business grew by more than 18% year-on-year, while online grocery sales from its internet portal were up by almost 20%.
business@thecourier.co.uk