"A fabulous performance" was Shore Capital analyst Clive Black's verdict. Sainsbury's, Britain's third-biggest supermarket chain, reported its fastest rate of underlying sales growth in two years this week. In the 11 weeks to late March, sales at shops open at least a year grew by 6.2% excluding fuel.
This proved a stark contrast to the fortunes of high-street retailers. The March Confederation of British Industry (CBI) survey was close to the record levels of weakness seen in December when the survey reached "its lowest level since records began in 1983", said Daniel Pimlott in the FT. Sainsbury's profited from food inflation, Deutsche analyst James Collins told Bloomberg food is a big part of the business and its wealthier customers are flocking to stores as they trade down from eating out to eating in. But there was also a 60% jump in sales of its new 'Basics' range of thrift goods.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Oil price stays steady as tensions in Middle East boils overOil prices surged after Israel's attack on Iran, but the global market for the commodity is forecast to remain well-supplied until 2030
-
Israel attacks Iran – will the US join the conflict?Opinion The two countries have been exchanging fire since Israel launched air strikes against Iranian nuclear facilities and infrastructure on Friday 13 June. But without US involvement, it may only have created a “wounded big beast”
