Cheap food soar Sainsbury's sales
Is Sainsburys getting better and cheaper? If numbers don't lie, then the announcement of a 6.2% increase in sales at the UK's 3rd largest supermarket chain would be a resounding 'yes'. According to Reuters, analysts forcast sales growth between 4.7% to 5.8%, but the retailer surpassed that seeing a larger increase in demand for its 550 "basic" products, a reflection of cash strapped shoppers looking for a bargain.
“These sales reflect the strength and resilience of the Sainsbury’s brand as we have continued to develop our offer to help customers get the best value from their household budgets,” said Chief Executive Justin King.
This is by far the best performance growth amongst all major supermarket chains this year, mostly due to sales of their low cost 'basic' products, which has leapt by 60%. Morrisons and Waitrose are also not doing too badly, reporting a 7.9% rise in sales last year and 5.2% in the first five weeks this year respectively. I personally never shop at Sainsbury's, but from reading about their budget "Taste the difference" (TOD) products and catering to consumers with limited budgets, I might need to pop down the road and see what it's all about. Will the rest of the supermarket chains keep up with the tough times?