Sainsbury's Premium Store Brands Contribute to Third Quarter Sales Rise

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January 18, 2011

Sainsbury’s third quarter same-store sales rose 3.6 percent, which the U.K. grocer attributed primarily to aggressive merchandising of its premium private label brands during the holidays.

Sainsbury’s outperformed all its U.K. rivals, according to an analyst quoted in a Bloomberg report. The grocer reported it doubled sales in its highest-priced Taste the Difference store brands line by adding 300 items before the holidays such as mince-pie ice cream and proseco (Italian sparkling wine).

CEO Justin King said Taste the Difference sales increased 10 percent overall in the quarter, with much of the growth coming the week before Christmas, according to a Bloomberg report. Other high-end items such as Sainsbury’s Norfolk Black Woodland free-range turkeys rose 30 percent while smoked-salmon sales increased 16 percent for the quarter.

According to a recent Kantar report, shoppers purchased 11 percent more premium private label items from the top U.K. supermarkets in 2010 than they did the prior year.

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