TIDMSBRY
RNS Number : 8875T
Sainsbury(J) PLC
11 January 2017
J Sainsbury plc
Third Quarter Trading Statement for the 15 weeks to 7 January
2017
(CORRECTION)
The announcement released by J Sainsbury plc entitled "Third
Quarter Trading Statement for the 15 weeks to 7 January 2017" on 11
January 2017 at 7.00am incorrectly stated in Note 2 Sainsbury's
Total Retail Sales (excluding the impact of the sale of Pharmacy
business) including and excluding fuel. All other figures remain
unchanged. The corrected figures are set out in Note 2 in the
reissued announcement below:
Third Quarter Trading Statement for the 15 weeks to 7 January
2017
Good Christmas performance as customers choose Sainsbury's for
quality, choice and value
-- Sainsbury's: Total Retail sales(1) up 0.8 per cent (excl.
fuel) and like-for-like Retail sales up 0.1 per cent (excl. fuel),
with total volumes up and like-for-like volumes flat
-- Argos: Total sales up 4.1 per cent and like-for-like sales up 4.0 per cent
-- Combined Sainsbury's and Argos like-for-like sales up 1.0 per cent (excl. fuel)
Mike Coupe, Group Chief Executive, said: "Sainsbury's offered
customers greater quality food, choice and value than ever before,
across all channels. We had a record Christmas week, with over 30
million customer transactions at Sainsbury's and over GBP1 billion
of sales across the Group. Thanks to the commitment of all our
colleagues, we delivered an excellent shopping experience and
helped our customers live well for less over the festive
period.
"Our Groceries Online and Convenience channels performed well,
achieving over nine and six per cent sales growth respectively and
at Argos we saw record levels of online participation. Online sales
made up 18 per cent of total Group sales in the quarter.
"Clothing and General Merchandise also had a very strong
quarter, with Clothing sales up ten per cent and General
Merchandise up three per cent.
"At Argos we delivered strong growth in the quarter, driven by
the key Black Friday and Christmas trading periods. Our Argos
digital stores in Sainsbury's supermarkets are performing well, as
awareness of the convenience of shopping at both Sainsbury's and
Argos under one roof grows among our customers.
"The market remains very competitive and the impact of the
devaluation of sterling remains uncertain. However, we are well
placed to navigate the external environment and remain focused on
delivering our strategy."
Strategic and operational highlights
Our vision is to be the most trusted retailer where people love
to work and shop. We are focused on delivering the five pillars of
our strategy:
We know our customers better than anyone else
-- Sainsbury's has removed the vast majority of multi-buy
promotions and continues to implement its simpler pricing and
promotional strategy
-- Sainsbury's achieved like-for-like transaction growth across
all channels, total volumes up and like-for-like volumes flat
Great products and services at fair prices
-- We remain focused on offering both quality and value:
o This year customers paid 14 per cent less for a typical
Christmas basket at Sainsbury's than they did two years ago(2)
o 25 per cent of Sainsbury's brand food was new or improved this
year compared to two years ago, including our Taste the Difference
party food range, where sales increased by 50 per cent
year-on-year
o Our Blanc de Blanc Brut NV champagne and our Taste the
Difference 18-month aged Cognac-laced Christmas puddings were both
named Which? Best Buys this year
o Our turkeys were the best value on the market by 39 pence per
kilo(3) ; volumes were up over 30 per cent year-on- year across the
range
-- Sainsbury's Clothing sales grew by ten per cent and General
Merchandise grew by three per cent
-- Argos delivered strong sales growth in technology categories
(wearable tech, mobile phones, computers, TV and audio), toys,
sports and gifts
-- Sainsbury's Bank performed well, with credit card new
business more than doubling year-on-year, driven by an extended
range of market leading products
There for our customers
-- Argos had a strong online performance over the key Black
Friday period, with 65 per cent of sales taken online and a quarter
of a million Fast Track deliveries over that weekend. Over the
third quarter, online sales grew by 13 per cent, accounting for 57
per cent of Argos sales
-- There are now 30 Argos digital stores and three Habitat
stores in Sainsbury's supermarkets and over 200 digital in-store
collection points where customers can collect their Tu clothing,
eBay purchases and DPD parcels
-- Groceries Online achieved sales growth of over nine per cent
and orders grew by 13 per cent. With a strong operational
performance, the business had a record week in the quarter,
delivering over 300,000 online orders
-- Sainsbury's Convenience business grew six per cent and opened
15 new stores, including six trial franchise stores in Euro
Garages' petrol forecourts
Colleagues making the difference
-- Our colleagues provided excellent customer service over the
Christmas period, when our stores are at their busiest
-- Sainsbury's was named Grocer 33 Store of the Week for the
11(th) time this year(4) , the highest of any grocer this year
Our values make us different
-- Sainsbury's brand Christmas advertisement had over 31 million
views across social media and raised over GBP500k for Great Ormond
Street Hospital
Investor Relations Enquiries Media Enquiries
James Collins +44 (0) 20 7695 0080 Louise Evans / Rebecca Reilly
+44 (0) 20 7695 7295
Notes
1. All sales figures contained in this trading statement are
stated including VAT(5) and in accordance with IFRIC 13
2. Total Retail sales and like-for-like retail sales
performances for Sainsbury's, Argos and the Group are set out in
the tables below:
FY 2015/16 Q1 Q2 H1 Q3
Sainsbury's Retail
sales growth excluding
fuel
Total 0.4% 0.3% (0.4)% (0.1)% (0.3)%
Total (excl. impact
of sale of Pharmacy
business) 0.8%
Like-for-like (0.9)% (0.8)% (1.1)% (1.0)% 0.1%
Sainsbury's Retail
sales growth including
fuel
Total (1.2)% (0.1)% 0.0% (0.0)% 1.4%
Total (excl. impact
of sale of Pharmacy
business) 2.4%
Like-for-like (2.5)% (1.0)% (0.5)% (0.7)% 1.7%
Argos Retail sales
growth Q3
Total 4.1%
Like-for-like 4.0%
3. Sainsbury's store investment programme 2016/17
At the end of the quarter, Sainsbury's had 604 supermarkets and
796 convenience stores (including six franchise stores)
2016/17 Q1 Q2 H1 Q3
Supermarkets
New - 1 1 3
Replacements - 1 1 -
Extensions - - - -
Refurbishments - 4 4 8
Closures - (1) (1) (1)
Convenience
New 7 9 16 15
Closures (6) - (6) (2)
Extensions - - - -
Refurbishments - 1 1 -
At the end of the quarter, Argos and Habitat store estate was as
follows:
2016/17 H1 Q3
Argos Stores 725 723
Argos in Sainsbury's 15 30
Argos in Homebase 95 83
Habitat(6) 4 7
Other(7) 4 42
Total 843 885
4. Argos' historic total and like-for-like sales performance is set out below. This reflects its pre-acquisition periods: FY2015/16 for the 52 weeks to 27 February 2016; Q1 for the 13 weeks to 28 May 2016; Q2 for the 13 weeks to 27 August 2016; and H1 for the 26 weeks to 27 August 2016
FY 2015/16 Q1 Q2 H1
Argos sales growth
(ex VAT)
Total 0.0% 2.6% 3.0% 2.8%
Like-for-like (2.6)% 0.1% 2.3% 1.2%
5. Certain statements made in this announcement are
forward-looking statements. Such statements are based on current
expectations and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from any
expected future events or results referred to in these
forward-looking statements. Unless otherwise required by applicable
law, regulation or accounting standard, we do not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise
6. Sainsbury's also released today its Third Quarter Corporate
Responsibility & Sustainability update. This is available at
www.j-sainsbury.co.uk/investor-centre/results-and-presentations/
7. A conference call will take place at 8:30am. To listen to the
audio webcast we recommend that you register in advance. To do so
please visit www.j-sainsbury.co.uk prior to the event and follow
the on-screen instructions. To view the transcript of the
conference call go to www.j-sainsbury.co.uk and follow the
on-screen instructions in the third quarter trading statement
section
8. The sale of our Pharmacy business to LloydsPharmacy completed
on the 31 August 2016. The impact of this disposal is excluded from
like-for-like sales for a period of one year from this date
9. Sainsbury's will announce its Fourth Quarter Trading Statement on 16 March 2017
(1) Sainsbury's total Retail sales excluding the impact of the
sale of the Pharmacy business. Including the impact of the sale of
the Pharmacy business, total Sainsbury's Retail sales were down 0.3
per cent (excl. fuel)
(2) Based on Sainsbury's internal data
(3) Based on midpoint of weight band for whole standard
turkeys
(4) The Grocer 33 Service & Availability wins year-to-date
since 18(th) June 2016
(5) Argos sales growth for pre-acquisition periods set out in
note 4 excludes VAT
(6) Three Habitat stores, one Habitat store in Argos, three
Habitat stores in Sainsbury's
(7) 36 collection points in Sainsbury's, one collection point in
Habitat, four temporary Argos stores, one convenience store
This information is provided by RNS
The company news service from the London Stock Exchange
END
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