Sainsbury's first quarter trading statement

[idpickering]

· Retail sales1 up 2.7 per cent (excl. fuel)

· Retail like-for-like sales2 up 2.3 per cent (excl. fuel)3

· Grocery sales up 3.0 per cent and transaction growth of 1.9 per cent at Sainsbury's

· Outperformed the market in General Merchandise and Clothing

Mike Coupe, Group Chief Executive, said:

"We have delivered a strong performance, driven by our differentiated strategy, offering customers quality, value and choice across food, general merchandise, clothing and financial services. Grocery sales are up three per cent and transactions up two per cent, with like-for-like transaction growth in all channels. We have seen strong food sales where we have invested in product innovation, such as our new Summer eating ranges. Our Produce category, where we know quality matters most to customers, performed particularly well, outperforming the market4 with volume growth of over one per cent.

"Customers recognise that we offer a leading combination of quality and value and we have worked with suppliers to improve our price position versus competitors.5 We are proud of the service our colleagues give customers day in day out and were delighted to have been recognised for best service and availability for the fifth year in a row.6

"Groceries Online sales grew by eight per cent and Convenience delivered strong growth of ten per cent, in line with our strategy of being there for customers whenever and wherever they want to shop.

"General Merchandise and Clothing, including Argos, outperformed the market, with Fast Track delivery and collection seeing a stellar performance during the quarter, particularly during the period of warm weather when customers wanted to buy and receive their products the same day. Argos customers are increasingly choosing to shop with us online, consistent with our objective of being a leading digital retailer.

"The market is competitive and we continue to manage cost price pressures closely. Our strategy is delivering and we are well placed to navigate the external environment

http://www.investegate.co.uk/sainsbury- ... 00059996J/

disc - I hold.

[idpickering]

Out of interest, here's an item from our former gaff on Sainsbury, and today's announcement;

J Sainsbury plc: time to buy in or bail out?

Shares in Sainsbury (LSE: SBRY) climbed 1% in early trading as the market digested the latest figures from the UK’s second biggest supermarket.

Over the 16 weeks to the start of July, retail sales rose 2.7%, excluding fuel and the impact of selling its pharmacy business. On a like-for-like basis, sales were up 2.3%.

The 3% rise in grocery sales — a big improvement on the 0.3% achieved in both Q3 and Q4 of the last financial year — will be particularly pleasing to existing shareholders, as will the 8% and 10% respective increases in online and convenience store sales.

http://www.fool.co.uk/investing/2017/07 ... -bail-out/

I hold and have no intention of 'bailing' out.

Ian.

[pendas]

I've held since 2009 and I'm down around 25% on capital. With dividends I should break even this year.

[idpickering]

I've held since 2009 and I'm down around 25% on capital. With dividends I should break even this year.

That's very commendable pendas, maintaining your HYP focus throughout. You could teach a few of us a lesson on being less fickle maybe, me included.

Ian.

[Bouleversee]

I've held since 2009 and I'm down around 25% on capital. With dividends I should break even this year.

You're not really breaking even though, are you, now that inflation has taken off, any more than I am, though I see my loss is down to 7.25% now. Having said that, I have hopes that Sainsbury will do better in future.

There seem to be a depressing number of losses in my p/fs., some very substantial amounts. All rather depressing, though I did have something to cheer me up yesterday: a near £1600 div. from Persimmon, not bad on a book cost of around £8,600, now over 285% higher, and with similar sums paid out in recent years and more to come. Up again today. What's not to like? If only they were all like that. Although, because of the increase in value, it is now a much higher proportion of the p/f than most of the others, I might get rid of some of the rubbish I have bought in recent years and buy more, with such a good yield and a low p/e. I might even include Taylor Wimpey in the sales; that's down almost l4% for me and I don't remember any massive divs. to compensate. Why are they so popular on here and PSN not?

[monabri]

The secret to HYP?....keep living.

[csearle]

Can I just say to all of you that hold Sainsbury's, unlike myself, that I have personally and mightily contributed toward your dividend. No need for explicit thanks - just be kind to me. C.

[idpickering]

Why are they so popular on here and PSN not?

Funnily enough Bouleversee, I was considering bringing them on board my HYP only yesterday, to have them sit alongside my Taylor Wimpey holdings, and in keeping with my 'doubling up in a sector' policy if possible.

Regards,

Ian.

[monabri]

I might even include Taylor Wimpey in the sales; that's down almost l4% for me and I don't remember any massive divs. to compensate. Why are they so popular on here and PSN not?

The TW yield is 1.6% but this increases to 6.8% with a special Divi. The special (9.2p per share) will be paid on 14 July having gone XD on 1st June.

"Every little helps".... (whoops, wrong supermarket)

[Bouleversee]

Why are they so popular on here and PSN not?

Funnily enough Bouleversee, I was considering bringing them on board my HYP only yesterday, to have them sit alongside my Taylor Wimpey holdings, and in keeping with my 'doubling up in a sector' policy if possible.

Regards,

Ian.

Up 3.28% today. Looks like we both missed the boat but worth keeping an eye on.

[Bouleversee]

The secret to HYP?....keep living.

I'll do my best but just read that Bucks is denying people hip and knee surgery as so short of NHS money and in my experience the hospital care is dire. The longevity figures are already coming down. I don't think some of my shares will ever recover; time to bite the bullet.