Sainsburys growth beats Tescos
Published: 17 June 2009 By MoneyhighStreet Staff Leave a Comment
Sainsburys issued a trading statement today and sales are up 7.8%, beating the Tescos growth announced yesterday of 4.3%.
This growth from Sainsburys puts it closer to the 8.2% growth recorded by Morrisons.
Justin King, chief executive, commented ‘Customers know that saving money at Sainsbury’s does not mean compromising on quality of values. Customer numbers have increased to over 18.5 million a week and basket size has grown as further investment in price and product ranges helps customers get the best value from their weekly grocery shop.’
The growth reported by Sainsburys is broadly in line with market expectations.
Sainsburys also announced today that it plans to raise £445 million to accelerate its growth plans, adding 2.5 million sq ft of selling space by March 2011.
Sainsburys is to acquire a further 9 Co-op stores, these being on top of the 24 it already purchased earlier this year.
Sainsburys shares are currently down around 4.7% at just over 316p.
It will be interesting to see how Sainsburys shares now fair compared to rival Morrisons.
Indeed there could be an impact on Marks & Spencer shares as Sainsburys continues to seek market share.
Investors should of course make their own judgements on buying or selling shares and if in doubt seek independent financial advice.