Sainsbury’s (LON:SBRY) said in a second quarter trading statement on Wednesday that it has experienced an improved sales momentum across all business areas.
The company also announced that it will be closing many stores and opening new ones.
Shares in the supermarket chain were up during trading on Wednesday.
Sainsbury’s said that second quarter total retail sales were up 0.1%, excluding fuel, and like-for-like sales were down 0.2%, excluding fuel.
Meanwhile grocery sales increased by 0.6%, general merchandise sales declined by 2% and clothing sales rose by 3.3%.
The supermarket chain added that it will be opening 10 new supermarket stores whilst closing up to 15.
Sainsbury’s also said that 70 Argos stores will be closed and 80 Argos stores will be opened in Sainsbury’s supermarkets.
Moreover it will close 40 convenience stores and open 110 new ones.
Sainsbury’s expects the closures to deliver a profit benefit of £20 million each year.
“Sales momentum was stronger in all areas and we further improved our performance relative to our competitors, particularly in Grocery,” Mike Coupe, Chief Executive Officer, commented in a company statement.
“We have focused on reducing prices on every day food and grocery products and expanding our range of value brands, which have been very popular with customers,” the Chief Executive Officer continued.
“At the same time, we are investing significantly in our supermarkets, driving consistent improvements to service and availability.”
“Argos continued to grow market share in key categories, but sales were impacted by reduced promotional activity and the timing of new product releases in gaming and toys. Clothing sales were boosted by clearance activity and strong online growth and Tu continued to grow market share.”
Additionally, Sainsbury’s said that though retail markets remain highly competitive and the consumer outlook remains uncertain, it is on track to deliver full year underlying profit before tax in line with expectations.
Shares in J Sainsbury plc (LON:SBRY) were trading at +2.21% as of 11:13 BST Wednesday.