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


Adidas wants to strengthen bond with small retailers

15/07/2018

German sportswear giant Adidas says it wants to strengthen its bond with small-scale retailers after they claimed Adidas is too aggressive in pushing its web shop, especially as they feel the brand is favouring large international chains as well.

Several candidates to take over Men at Work

12/07/2018

There are several takeover candidates for both the Dutch and the Belgian stores of the bankrupt clothing chain Men at work. The curator is confident an agreement should be reached today in Belgium.

Burberry sales increases thanks to new strategy

11/07/2018

The new strategy of the British fashion brand Burberry starts to render: the company had a 3% increase of revenue in their own stores last quarter. In total, Burberry has now a revenue of 479 million pounds (520 million euros).

FNG moves to Brussels stock exchange

06/07/2018

Belgian fashion group FNG has collected 60 million euros by issuing new shares. The new shares will be traded on the Amsterdam Stock Exchange and - for the first time - on the Brussels Stock Exchange as well.

Athleteshop ends its run

02/07/2018

Dutch sports web shop Athleteshop has filed for bankruptcy, after an abysmal year in which strings of complaints led to all sorts of problems. Social media and review sites were flooded with customers complaining about late deliveries.

Alibaba goes Turkish with stake in Trendyol

29/06/2018

Alibaba is the new strategic partner of Trendyol, one of the best-known e-commerce companies in Turkey. With this partnership, the Chinese retailgroup strengthens its presence in Europe.