UK: Sainsbury's to speed up expansion
Sainsbury's, the UK's third-largest grocer, said today (17 June) that it plans to launch a GBP445m (US$728.9m) fund-raising programme to accelerate its expansion in the UK.
The news sent Sainsbury's shares down in early trading - despite the company reporting a 7.8% rise in like-for-like sales during its first quarter.
Sainsbury's shares were trading at 316.25p at 09:02 BST this morning, down 4.7%.
Chief executive Justin King said the capital raising would help Sainsbury's "speed up" its growth in areas where it has low market share.
"The fund raising announced today will provide us with the financial flexibility to take advantage of current opportunities to grow our business further and faster," King said.
Sainsbury's will place a tranche of new ordinary shares in the company and issue convertible bonds due 2014 - moves it hopes will help raise around GBP445m.
The retailer also announced that it had bought nine stores from UK peer The Co-operative Group for GBP29m. The purchase follows a deal struck in March to acquire 29 stores from The Co-op for GBP83m.
Sainsbury's ambition is to grow its floor space by 15% - or 2.5m sq ft - by March 2011.
Commenting on Sainsbury's first-quarter results, King said customers numbers and basket size had grown thanks to "further investment in price and product ranges".
King said: "At the beginning of June we made a further significant investment in price and have now lowered 7,000 prices since January 2009. Consumers are spending more cautiously but continue to look to trusted brands to act responsibly on ethical and environmental concerns on their behalf. Sainsbury's continuous innovation gives us a leading position on such issues."
Sainsbury's total revenues for the 12 weeks to 13 June were up 3.2% - or 7.6% excluding fuel.
Morrisons said today (19 November) that its sales growth was dented by lower food inflation in the third quarter, but insisted that its high growth rate was sustainable for the "foreseeable future"....
UK supermarket group Sainsbury's has insisted that its continued investment in food differentiates the company from the rest of the country's grocery retail market....
"The silence was indeed deafening", one UK media commentator remarked on Sainsbury's refusal yesterday (15 October) to comment on rumours that Qatar's sovereign wealth fund was plotting to renew its e...
Morrisons said today (19 November) that its third-quarter like-for-like sales growth had slowed. The news, coming hot on the heels of CEO Marc Bolland's announcement that he is moving to Marks and Spe...
Peter Marks, the chief executive of UK retailer The Co-operative Group, had reason to smile when he addressed the country's grocery members on Tuesday (13 October)....
The UK's major supermarkets should be broken up to stop them monopolising the market place, a leading adviser to the Conservative Party said yesterday (26 November)....
UK supermarkets could do more to help stop dwindling fish stocks by supplying customers with sustainably sourced seafood, according to a report published today (26 November)....
UK supermarket Waitrose has today (26 November) announced the acquisition of five shops from The Co-operative Group....
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Interview: UK trade body on Brexit's policy impact
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on the impact of Brexit
- Nestle lowers outlook on "softer environment"
- PepsiCo sets 2025 nutrition, sustainability goals
- China "transition" drags on Danone Q3
- UK announces "action plan" to drive food exports
- CP Foods invests in UK foodservice firm Foodfellas
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review