Sainsbury's sees profit soar, but sales stabilise | RetailDetail

Sainsbury's sees profit soar, but sales stabilise

Sainsbury's sees profit soar, but sales stabilise

British supermarket chain Sainsbury's saw its 2013-2014 profits soar 16.3 % to 898 million pounds (1.09 billion euro) despite the "tough retail environment": like-for-like sales only grew 0.2 %.

Discounters spark price war

The challenging part of the previous fiscal year was the emergence of discounters like Aldi and Lidl, which have forced the major supermarket chains in the United Kingdom to lower their prices. "We will match the price activity of our competition - we always have", Sainsbury's CEO Justin King has stated.

 

He did however also state that it is not merely about price, as "quality, the provenance of sourcing is a big factor as well" and he believes that Sainsbury's has really shone this past year. General merchandise sales grew more than twice as fast as food, while its clothing brand also helped generate 750 million pounds (900 million euro) in sales.

 

The company remains vigilant about the future, warning that "conditions in the food retail sector are likely to remain challenging for the foreseeable future as customers continue to spend cautiously", King said. Investors showed their appreciation for the positive results and helped Sainsbury's share price to rise 1.92 %.

Questions or comments? Please feel free to contact the editors


Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.

H&M is turning to algorithms to boost sales again

14/05/2018

In an effort to reverse the decline in its worldwide sales, H&M is using technology that will help the world’s largest clothing brand stock its stores more efficiently, sell more effectively and adapt more quickly to current consumer trends.

Zalando's profit wiped away in first quarter

08/05/2018

German online retailer Zalando saw its first quarter profit completely wiped away: last year's 5.1 million euro net profit turned into a 15 million euro loss. Turnover grew 22 %, investments being the cause for both.

Strong online growth for Hugo Boss

03/05/2018

German fashion brand Hugo Boss managed growth in every region in the first quarter. Group turnover grew 5 % to 650 million euro, partially thanks to strong web shop sales.

France will impose recycling for unsold clothing in 2019

02/05/2018

The French government plans to impose a ban on the disposal or destruction of unsold clothing by fashion companies. The measure extends the rules already in place for food waste to the spillage of clothing.