Sainsbury’s has grown its convenience sales in three months ending 30 June by 3.6% year-on-year, despite total grocery sales only increasing by 0.5% in the same period.
Grocery sales for the previous quarter and the three months before increased by 2.1% and 2.3% respectively. Sainsbury’s chief executive Mike Coupe said the figures reflect the supermarket’s decision to invest £150m into reducing prices of products such as fresh meat, fruit and vegetables. “The headline numbers reflect the level of price reductions we have made in key areas like fresh meat, fruit and vegetables since March.
“Our price position has improved and customers have responded well, resulting in a continuation of the improved volume trend we saw in the second half of the last financial year.”
The latest figures come as Sainsbury’s announced its proposed takeover of Asda in April, which is still subject to approval from the UK’s competition watchdog. Commenting on the deal, Mr Coupe added: “The market remains competitive. However, we have the right strategy in place and our proposal to combine Sainsbury’s and Asda will create a dynamic new player in UK retail, with the scale to give customers more of what they want today and create a more resilient and adaptable business for the future.
“We have successfully agreed a financing package of £3.5bn in relation to the proposed combination. The financing has been raised on attractive terms, reflecting the confidence of the lending banks in the outlook for the proposed combined business.”
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