Sainsbury's reaps the benefits of health trends

By James Knowles

- Last updated on GMT

Related tags Supermarket Sainsbury

Sainsbury's sales are up in its second quarter trading statement
due to an increasing focus on current health trends.

The supermarket chain is up 7.6 per cent on total sales in the second quarter (eight per cent excluding petrol), and up 6.5 per cent in like-for-like sales (6.6 per cent excluding petrol).

Justin King, chief executive of Sainsbury's, said that the store's continued growth was due to good weather and the focus that this places on fresh and healthy food. Following this trend Sainsbury's has relaunched its 'taste the difference' (TTD) range. The introduction of 250 new products brings the whole range to 1,100 lines.

"This range has strict brand guidelines such as no artificial colours, flavours or hydrogenated fats and uses only free range eggs and UK sourced meat,"​ said Justin King.

The food retailer through a combination of cooperation with celebrity chef Jamie Oliver and innovations such as 'try something new today' branding, aims at strengthening the Sainsbury's brand as one that offers fresh, healthy and tasty produce.

Sainsburys have experienced growth despite increased pressure in the market on the cost of energy, commodities and fresh produce. The food retailer also claims that grocery inflation for the quarter was lower than the whole market allowing the supermarket to impose its price position during the period.

"As previously announced we will experience a significant step up in our energy costs of around £55 million in the second half. We also face much tougher sales growth comparatives as we come up against the strong trading performance of over five per cent like-for-like growth achieved in the second half of 2005/06" said Justin King.

Sainsbury's is currently developing its estate having extended five supermarkets, refurbished 32, and opened seven new stores all in the first half of the year.

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