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| Version 1 | Version 2 |
|---|---|
| Sainsbury's says sales 'solid' in tough market | Sainsbury's says sales 'solid' in tough market |
| (40 minutes later) | |
| Supermarket group Sainsbury's has reported "solid" sales growth for the past three months in what it describes as a "tough consumer environment". | Supermarket group Sainsbury's has reported "solid" sales growth for the past three months in what it describes as a "tough consumer environment". |
| Like-for-like sales - which ignore the effect of new stores - excluding fuel rose 1.9% in the 12 weeks to 11 June. | Like-for-like sales - which ignore the effect of new stores - excluding fuel rose 1.9% in the 12 weeks to 11 June. |
| The retailer said it had benefited from Easter shopping, good spring weather and the royal wedding. | The retailer said it had benefited from Easter shopping, good spring weather and the royal wedding. |
| But it said higher fuel costs were reducing the amount of money people have available to spend. | But it said higher fuel costs were reducing the amount of money people have available to spend. |
| The company's budget range - Basics - is its fastest growing brand. | The company's budget range - Basics - is its fastest growing brand. |
| Sainsbury's also saw strong growth in its smaller convenience store business, which grew by 20%. | |
| "We've delivered a solid sales performance, in line with our expectations, in spite of the continued tough consumer environment," said Sainsbury's chief executive Justin King. | "We've delivered a solid sales performance, in line with our expectations, in spite of the continued tough consumer environment," said Sainsbury's chief executive Justin King. |
| Sainsbury's first quarter sales figures in its trading update included VAT. On Tuesday, comparable figures from Tesco showed a 1% rise in UK sales for the 13 weeks to 28 May. | |
| Excluding VAT, Tesco's UK sales were down 0.1%. Sainsbury's told the BBC that when VAT was excluded its sales were up 0.9%. | |
| Upbeat mood | |
| Sainsbury's said that sales of clothing and non-food items grew faster than food. | |
| It said that trading conditions remained "very competitive, reflecting the challenging economic backdrop". | |
| "We expect this to be the case throughout the year," it added. | |
| Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said: "The update has narrowly missed estimates, but the company itself was noticeably upbeat about the latest performance. | |
| "In particular, management was at pains to point out that its non-food offerings grew faster than food and, indeed, ahead of the Tesco number yesterday - albeit that Sainsbury is coming from a lower base." |