Sainsbury's goes back to basics as sales rise

SUPERMARKET chain Sainsbury's today provided further evidence that consumers are turning to cheaper own-brand goods as it said its "basics" food range was its fastest growing sub-brand.

The rising price of many basic foodstuffs coupled with the current economic climate has forced consumers to be more prudent with their money.

Although evidence suggests some prices have started to come down, Sainsbury's interim results for the 28 weeks to October 4 show basics range sales are up 25 per cent in the first half of the year.

It comes after an Evening News investigation at a typical Sainsbury's store in Edinburgh last month revealed that prices were down slightly on the same shopping basket in September.

More than half of Sainsbury's basics range is priced under £1 and over 100 products are under 50p, making the range extremely attractive to cash-strapped customers.

In line with other supermarkets, Sainsbury's recorded a good first-half performance, with total sales up 7.6 per cent to £10.7 billion, while like-for-like sales excluding fuel increased by 3.9 per cent.

The company has now seen 15 quarters of consecutive like-for-like sales growth, and a continued growth in customer numbers with around 18 million customer transactions each week.

Chairman Philip Hampton said: "Our results are testament to the considerable progress made over the past four years as part of the 'Making Sainsbury's Great Again' recovery plan.

"Sainsbury's is now a more robust business, with a strong financial position and capable of responding successfully to the current challenging economic conditions."

Chief executive Justin King said: "Sainsbury's has continued to drive cost efficiencies and this, alongside the good sales performance, has delivered further profit growth.

He added: "Getting the best value for money is even more important to consumers when household budgets are stretched. Customers are now buying a different mix of products and we have successfully developed our offer to help offset the rising cost of living and tighter household budgets."