Sainsbury’s today said its sales of online groceries were growing at more than 16% a year, as the need for convenience continued to boost turnover.
The supermarket said its convenience store sales were growing at a similar pace, up by nearly 20% in the 12 weeks to June 8, compared to the same time last year.
“Convenience remains a strong driver for growth,” said chief executive Justin King.
The update came in a first quarter trading statement, as Sainsbury’s reported total sales up by 3.3% on last year, excluding fuel, as the company opened more stores. Nineteen convenience stores opened over course of the quarter, while one new supermarket also opened. Like-for-like sales rose by 0.7%, while market share lifted slightly to 16.8%.
“This has been a solid performance in what continues to be a tough consumer environment,” said King. He added: “We are the only major grocer growing market share, up 0.2% to 16.8%.”
He added: “Our strategy of focusing on general merchandise categories which are complementary to our great food offer is helping us gain market share. Non-food continues to grow at over twice the rate of food. We have seen particularly strong sales in homeware, with kitchen electricals growing at over 34 per cent year-on-year and cookware growing at nearly 23 per cent year-on-year.”
King said the supermarket was “well positioned to continue to outperform the market.” He added: “We expect the challenging economic environment to continue through this financial year. By helping our customers to Live Well For Less through our ongoing commitment to great quality own-brand products, Brand Match, competitive pricing and targeted promotions via Nectar and coupon-at-till, we are well positioned to continue to outperform the market.”
