Healthy results at Sainsbury's

By James Knowles

- Last updated on GMT

Related tags Sainsbury Marketing

Sainsbury's today reported sales 60.2 per cent to £189m for the for
the 27 weeks ended 7 October due to a concentration on fresh and
healthy produce.

Operating profit rose 28 per cent to £215m. Operating margins are up 37 basis points to 2.43 per cent from 2.06 per cent.

Sainsbury's is now halfway through its three year plan to get Sainsbury's back on track, and claw back some of the UK market share.

"We have now delivered £1.3bn of additional sales after 18 months, which is now just over halfway towards our target to grow sales by £2.5bn by March 2008,"​ said Justin King, chief executive at Sainsbury's.

Promotional concentration on healthy eating and organic produce has paid off for Sainsbury's. The resurgent supermarket has enjoyed seven consecutive quarters of growth, and has driven total profit before tax, including discontinued operations, up to £194m, an increase of 123 per cent.

"We believe that our focus on healthy, safe, fresh and tasty food is becoming increasingly important for customers,"​ said King.

Sainsbury's has maintained a commitment to fresh and locally sourced food. All organic chicken, beef, pork, milk, eggs, cheddar cheese and in-season lamb is sourced from the UK. Own brand 'taste the difference' was relaunched in September, and has over 1,100 products in the range and is set to be a £1bn brand next year.

The food retailer also launched the 'try something new' initiative, which celebrated its first birthday in September. The innovative marketing strategy saw sales of mango increase by 400 per cent on the year before when featured in a 'try' tip in July.

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