Hard-hit Sainsbury sketch a comeback plan, partly succeeds |
|
|
Published
:
Thu, 23 Jun 2005 21:35
|
LONDON: Britain's third largest super market chain, J Sainsbury Plc., is on a turnaround path indicated by a 1.3 per cent increase in its first-quarter same-store sales, excluding the fluctuating petrol sales.
The growth is 1.9 per cent when the fuel sale is included. Total sales, including new space, went up by 5.7 per cent.
Sainsbury, pitted against two leaders in the country, Tesco and Asda, said product availability and price position are improving.
Chief executive Justin King said in a statement, "We are implementing the plans outlined in October 2004 and our progress is encouraging."
Analysts had predicted the company's sales growth to be between 1 and 2 per cent for the first quarter or total sales around 5 per cent, including petrol and new space.
King once again scotched rumors that the company is a target for acquisition. He said the company is heading in the right direction after a difficult period.
Sainsbury saw its pre-tax profits for the year ending March crash to 15 million pounds from 610 million pounds a year earlier.
Said King: "I will continue to be cautious about phrases like 'turning the corner', as it's not until you get year-on-year growth that you can say that. But it's encouraging that we have now had back-to-back quarters of growth. We have not had that for several years."
The company had reported in March that its sales had grown for the first time since July last year and that it is winning back lost customers from William Morrison and Asda. It had launched in October a three-year recovery program.
|
|
|
|
|
|
Print this Story
