Sainsbury's enjoys fourth quarter sales bounce, boosted by boodles

Sainsbury's posted positive sales growth in the fourth quarter, the first quarterly sales growth in more than two years, good news it would expect to boost its shares and its bid to acquire Home Retail Group.

With transactions and volumes both heading in the right direction, the supermarket group grew total sales 0.5% including fuel and 1.2% without, over the nine weeks to 12 March.

Like-for-like sales were up 0.1% excluding fuel and down 0.4% including.

Sainsbury's, which made no reference to Argos ahead of its 'put up or shut up' bid deadline on Friday, opened 16 convenience stores during the period, same as in the previous quarter and meaning a total 69 in the year.

Groceries online sales grew at nearly 14% and orders by nearly 19%.

Clothing delivered over 10% growth, helped by the best ever launch of a new Gok Wan collection, while entertainment sales were up nearly 11%.

Sainsbury's Bank continued grew volumes 15% in insurance new business and 12% in travel money in-store transaction volumes.

"We have traded well this year and are making excellent progress implementing our strategy," said chief executive Mike Coupe. "The market will remain competitive but we are confident that we will continue to outperform our major peers."

He also hailed the launch of new products to answer customer demand for healthy eating, including vegetable-based product innovations including 'boodles', or butternut squash noodles, and spiralized courgette 'courgetti', plus new lines added to the bread range including the rye loaf and sprouting grain boule.

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