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


Amazon prepares own sports clothing collection

17/10/2017

Amazon is allegedly working on its own collections of sports clothing, having contacted manufacturers working for chains like Gap and Uniqlo. These are currently only producing small numbers of clothing.

H&M invests in old clothing recycling

12/10/2017

Swedish H&M acquired a minority stake in Re:newcell, which focuses on a sustainable fashion industry and targets the recycling of old clothing.

Uniqlo's profit more than doubled

12/10/2017

In the past fiscal year, Japanese Uniqlo more than doubled its profit on the back of a 4 % turnover increase. The fashion chain forecasts international sales to soon outgrow those of Japan.

Gucci also halts fur production

12/10/2017

Fashion brand Gucci will no longer use fur in its clothing and accessories, as CEO Marco Bizzarri promised during his Kering Award for sustainable fashion acceptance speech for the London College of Fashion.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Luxury group LVMH exceeds third quarter expectations

10/10/2017

French luxury group LVMH has surpassed turnover expectations in the first three months of its fiscal year. Louis Vuitton and Christian Dior’s parent company managed a 12 % like-for-like turnover growth, to 30.1 billion euro.

Back to top