sainsbury’s quarterly sales growth slows on weak consumer spending tighter competition
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Sainsbury’s quarterly sales growth slows on weak consumer spending, tighter competition

Arab Today, arab today

Arab Today, arab today Sainsbury’s quarterly sales growth slows on weak consumer spending, tighter competition

Sainsbury’s and major rivals — market leader Tesco, Asda and Morrisons — are grappling with the rapid growth
London - Arab Today

British supermarket group Sainsbury’s reported slower quarterly sales growth and a drop in first-half profit on Thursday, as weak consumer spending and intense competition took their toll.
Sainsbury’s and major rivals — market leader Tesco, Asda and Morrisons — are grappling with the rapid growth of discounters Aldi and Lidl.
They are also having to cope with more expensive food imports due to a weaker pound since Britain voted to leave the European Union, while consumer spending is under pressure from rising inflation, subdued wage growth and economic uncertainty.
On Wednesday, Marks & Spencer said it faced “stronger headwinds” in food and was slowing openings of its upmarket convenience stores.
Sainsbury’s, which acquired electricals and toys retailer Argos last year, said growth in like-for-like sales, excluding fuel, slowed to 0.6 percent in its second quarter to September 23, from 2.3 percent in the previous quarter.
Analysts at Bernstein said Sainsbury’s second quarter outcome was 1.3 percentage points below consensus expectations. “The fall in like-for-like sales growth is coming from both grocery and general merchandise,” they said.
Sainsbury’s Chief Executive Mike Coupe said the outcome partly reflected a program to close around 100 Argos concessions in Homebase DIY stores and a “fairly soggy summer.”
“If you look at the more recent market data, we are at least holding our own, if not performing better than the overall market,” he told reporters.
“We’re pleased with the overall half (like-for-like sales up 1.6 percent) ... you have to look at it in the round,” he said.
However, he said consumers were currently “very value conscious.”
Sainsbury’s first-half underlying pretax profit fell 9 percent to £251 million (SR1.23 million) — ahead of analysts’ average forecast of £241 million but down from £277 million in the same period last year.
The outcome reflected efforts to keep prices low despite rising inflation, higher staff wages and inclusion of the seasonally loss-making Argos business in the results, partly offset by synergies and cost savings.
Sainsbury’s forecast full-year profit in line with analysts’ average forecast of £572 million, down from £581 million in 2016-17 — a fourth straight decline.
It said it would have 165 Argos stores in its supermarkets by Christmas and was on track to deliver 160 million pounds of synergy benefits from the acquisition six months ahead of schedule.
Sainsbury’s, which last month said it was seeking to cut up to 2,000 jobs, has exceeded its cost savings target and will achieve £540 million over three years ending 2017-18. At least a further £500 million is targeted over three years from 2018-19.
“While the market remains competitive, we are well placed to navigate the external environment,” said Coupe, adding he was confident about Sainsbury’s trading offer for Christmas.

Source:Arabnews

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sainsbury’s quarterly sales growth slows on weak consumer spending tighter competition sainsbury’s quarterly sales growth slows on weak consumer spending tighter competition

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sainsbury’s quarterly sales growth slows on weak consumer spending tighter competition sainsbury’s quarterly sales growth slows on weak consumer spending tighter competition

 



GMT 12:00 2017 Saturday ,04 March

Nadal races into Acapulco ATP final

GMT 09:36 2018 Saturday ,06 January

Divided UN Security Council to meet on Iran protests

GMT 04:47 2017 Sunday ,31 December

Passing on in 2017

GMT 21:51 2017 Tuesday ,31 January

Mwasalat calls bids for taxi management system

GMT 17:10 2017 Tuesday ,12 December

DCT launches Al Qattara Cinema

GMT 14:53 2017 Sunday ,26 March

Dialysis supplies dwindle for besieged Syrians

GMT 13:47 2017 Sunday ,30 April

Salman Khan in Dubai for ‘Tubelight’

GMT 02:22 2017 Saturday ,14 October

(July24th-August23rd

GMT 11:39 2017 Wednesday ,02 August

Victoria Beckham unveils AW17 collection

GMT 13:20 2017 Saturday ,23 September

Global crisis? Not on his Milan runway

GMT 14:47 2017 Tuesday ,21 February

Robin Hood rides into Croatia for new film

GMT 23:59 2017 Sunday ,26 February

The ultimate misery memoir

GMT 14:50 2017 Wednesday ,19 April

Japan warns of losing its efforts in Iraq

GMT 07:20 2017 Thursday ,27 April

Menna Shalaby reveals details of “Sunset Oasis”

GMT 16:58 2017 Saturday ,09 September

PM inaugurates 340 MW C-4 nuclear power plant at Chashma
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday