Sainsbury’s has defied the credit crunch and reported a substantial increase in half-year profits.
Now in its 15th consecutive quarter of growth, the number-three multiple’s underlying profits before tax were up 13.3 per cent to £272 million in the six months to October 4 and total sales rose by 7.6 per cent to £10.756m.
The supermarket’s financial summary 2008-09 has attributed its success during financial downturn to its “universal customer appeal”.
Some analysts had expected Sainsbury’s to suffer in the economic downturn. But, approximately 18m people now shop in its stores every week and consumers have responded positively to a big marketing push focusing on its own brands.
Chief executive Justin King said: “Customers are now buying a different mix of products. We have successfully developed our offers to help offset the rising cost of living and tighter household budgets.
“Progress in the last four years has made Sainsbury’s a more robust business with a wide customer base and universal appeal. While we expect the economic environment during the second half to remain particularly challenging, we are developing our offer to continue to meet the needs of customers and maintain our good progress.”
TNS, which measures grocery market share, said yesterday that Sainsbury was holding its ground in a difficult environment.
Sainsbury’s Basics budget range has been extended and is currently the company’s fastest growing sub-brand.
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