Trading Statement
January 12 2004 - 2:00AM
UK Regulatory
RNS Number:0902U
Sainsbury(J) PLC
12 January 2004
12th January 2004
Third Quarter Trading Statement for twelve weeks to 3 January 2004
J Sainsbury plc today reports sales for its third quarter. In the UK there were
encouraging sales for the four week Christmas and New Year period although the
scale of change affecting stores impacted sales for the earlier part of the
quarter. In the US, Shaw's performed well with strong sales over the
Thanksgiving period.
Sainsbury's Supermarkets (UK)
* Like-for-like sales up 2.0% for four weeks to 3 January with strong
contribution from core food ranges
* Quarter 3 total sales up 1.8%
* Quarter 3 like-for-like sales up 0.1%
* Business Transformation Programme on track for completion by summer 2004
* Confident of achieving cumulative cost savings of #710 million by March
2004
Shaw's Supermarkets (US)
* Total sales up 6.6%
* Like-for-like sales up 1.5%
* Good performance compared with peer group of US food retailers
Peter Davis, group chief executive, said: "The scale and pace of change in our
UK business is at its peak in this final year of our Business Transformation
Programme. Systems changes, the ramp-up of our new automated distribution
centres and the introduction of non-food ranges are being implemented
simultaneously. As we said at our Interims, the sheer volume of change is
affecting our stores' performance. However, like-for-like sales of 2.0 percent
over the Christmas and New Year period (four weeks ending 3 January 2004), when
stores were free of disruption, were an encouraging improvement in sales
performance and a sound base on which to build during our next financial year.
"In December we set aside the change programme and concentrated on trading hard.
We offered a strong Christmas product range, good service and availability and
also raised the bar on promotional activity. Our four new automated depots
successfully handled significant volumes during our peak Christmas week. Sales
in the seven days before Christmas were particularly good reflecting the
strength and appeal of Sainsbury's core fresh food offer. In the same period,
forty-three of our stores took over #2 million, up from thirty-four stores last
year.
"Sainsbury's to You, our grocery home delivery service, continued its strong
performance. Customer satisfaction levels were high and sales, for the first
time, exceeded #4.4 million in the seven days prior to Christmas.
"We have been pleased with the customer response to our new general merchandise
offer. Our full homeware range is now in 75 stores and early sales have been
encouraging. Clothing and Health and Beauty also performed well.
"Shaw's in the US performed well showing good sales momentum and a significant
improvement over the first half of the year. Trading was strengthened by eight
new store openings, three replacement stores, three extended stores and an
effective mix of promotions which helped generate strong sales particularly over
Thanksgiving. We also opened our 200th store last week. Unfortunately Shaw's
strong trading performance is offset by the translation impact of the continuing
adverse dollar exchange rate movement.
"In summary, we must continue to be realistic about the level of change being
undertaken in Sainsbury's Supermarkets and the major changes taking place in the
UK grocery retail sector. Our Christmas sales performance was an encouraging
indication for the future but it is still our priority to complete our Business
Transformation Programme and thereby realise lower costs and an improved
infrastructure.
"By summer 2004 we will focus fully on trading our business. We are developing
our customer proposition by investing in quality and innovation and further
improving our competitive offer. The Board is confident that this is the right
strategy for the long term growth of the business."
For enquiries:
Investor Relations:
Roger Matthews
Lynda Ashton +44 (0) 20 7695 7162
Media:
Jan Shawe +44 (0) 20 7 695 6127
Pip Wood
This information is provided by RNS
The company news service from the London Stock Exchange
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