UK supermarket chain Sainsbury’s has reported that second-quarter sales growth was dampened by the poor summer weather.
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The company posted an overall sales increase for the second quarter of 3.8%, with like-for-like growth of 2.6%. Excluding fuel, Sainsbury’s said total sales and like-for-like sales in the second quarter were up by 4.7% and 3.1% respectively.
Sainsbury’s said that second-quarter sales growth was also affected by very good comparatives from the corresponding period last year.
“This result represents strong sales growth in a quarter with some very tough comparatives, particularly during the first six weeks where exceptionally warm weather helped to deliver additional growth across the business last year,” said CEO Justin King. “Our two-year like-for-like growth remains at around 10%, building on the excellent results delivered last year.”
King added that growth in customer transactions had continued to drive an increase in customer spending. He also said that volumes remained strong over the first half of the year with like-for-like sales growth, excluding fuel, of 4.0%, in line with its expectations.
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By GlobalDataKing reported that the Sainsbury’s Great Again three-year programme, aimed at growing sales by GBP2.5bn (US$5.1bn) by March 2008, had so far delivered GBP2.3bn in additional sales, and the company remained “confident in our ability to deliver the new space and sales growth targets which we outlined in May 2007”.
