Sainsbury’s has reported better-than-expected Christmas trading figures, with consumers not shying away from spending on food and drink despite the credit crunch.
Like-for-like sales at the supermarket, excluding petrol, rose 3.7 per cent in the 12 weeks to December 29, ahead of analysts’ forecasts. Total sales increased 4.7 per cent in the period, excluding petrol. Online sales soared 40 per cent.
The performance contrasts markedly with that of Marks & Spencer, which yesterday reported a 2.2 per cent fall in like-for-likes in the 13 weeks to the same date.
Sainsbury's has now had 12 consecutive quarters of like-for-like sales growth, delivering its three-year growth targets ahead of schedule.
Chief executive Justin King said: "We have now successfully achieved our goal of£2.5 billion of additional sales since March 2005. This significant milestone in our recovery was surpassed early in quarter four, three months ahead of plan.
"Over the quarter, we continued our investment in the customer offer to ensure our price position remains competitive for customers, while continuing to provide the additional quality Sainsbury's products have to offer. We also delivered a number of market-leading promotions in the weeks leading up to Christmas."
Sainsbury’s said that its basic value and premium Taste the Difference ranges had the biggest growth over the period.
More than 21.5 million customers shopped at Sainsbury's in the seven days before Christmas and 300,000 customers were served an hour on December 23.
The performance of the grocer’s non-food business grew in line with expectations, led by growth in homewares, toys, electricals, entertainment and clothing.
Looking ahead, King added: "Consumer budgets are clearly under pressure and we expect the market to continue to be very competitive. The improvements we have made to our business during our recovery mean we are well-equipped to perform in this challenging environment and we remain confident in our ability to deliver our growth plans."
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