Sainsbury's Q1 trading statement 2019-20

The decrease is partly due to the colder start to summer and the absence of the men’s World Cup, which saw a large increase in BBQ food and alcohol. However, convenience and online sales grew by 1.5% and 5.1% respectively.

Stated in the Annual Report figures that were released last month, Sainsbury's have reduced costs in their supply chain in order to lower prices, making them more competitive on price and driving market growth but continue to work closely with suppliers in fresh produce. In the Q1 statement, Mike Coupe, Chief Executive of J Sainsbury plc, said ‘we reduced prices on over 1000 everyday food and grocery products and improved our relative performance’. 

For the 16 weeks to 29 June 2019, Sainsbury's completed 84 supermarket improvements with more than 200 expected to be completed by the end of the first half, and 400 by this time next year. Mike Coupe added ‘We are also accelerating investment in technology; 148 now have smartshop self-scan’.

Over the quarter, Sainsbury's introduced 33 new plant-based lines, including the UK’s first ‘Ribz’ and ‘Vegbabs’ to maintain their leading market share with chilled plant-based food at almost 30% in the UK retail market. This was seen alongside an 8.4% increase in dairy alternatives for 2019-2020. The considerable innovation and development of these products is a growing concern for farmers. We need to ensure that processors and retailers continue to deliver new and exciting meat and dairy products to customers. Better promotion and new product development coupled with a large social media presence will help to champion British food.

In May 2019, Sainsbury's celebrated its 150^th birthday and released a statement saying our focus giving customers high quality products at good value remains as true today was it was 150 years ago.

To read more on Sainsbury’s financial results, please click here