Easter and the Royal wedding boost general merchandise ranges despite tough trading environment but supermarket chain predicts continued pressure on consumer spending and a competitive market.
Sainsbury's general merchandise and clothing offer grew faster than food sales in Q1, despite, what the firm describes as a "very tough market". Non-food sales also saw strong growth online during the 12-week period ended June 11, 2011, supported by the retail chain's accelerated roll-out of its 'click and collect' service to another 240 of its stores.
Sainsbury's explained it will continue investing in its non-food offer and in online, with plans already in place to double its 'click and collect' stores, taking the total to 800 by Christmas.
The warm weather in April, coupled with the Easter and Royal Wedding Bank Holidays boosted figures, with the retailer selling thousands of flags and mugs and nearly 300 miles of bunting.
Sainsbury's own-brand ranges also performed strongly, as the increase in fuel costs placed further pressure on consumer's disposable income.
Total sales for the quarter, excluding fuel, saw a 4.3% increase, up 1.9% on a like-for-like basis.
Sainsbury's chief executive Justin King said: "We've delivered a solid sales performance, in line with our expectations, in spite of the continued tough environment."
However, the retail chain believes the market environment is still very competitive and expects the trend to continue throughout the year.