Fish and organic boost Sainsburys revenue

UK food retailer J Sainsbury Plc's on Tuesday posted a rise in food sales of 5.6 per cent for the fiscal first-quarter. Total sales at outlets open at least a year rose 8 per cent in the 12 weeks ended June 23 as the company renovated 15 stores and added 2.4 per cent in new store space. The figures include petrol sales. Sir Peter Davis, group chief executive of Sainsburys commented, "The entire food retail market is enjoying a buoyant phase caused in part by high levels of disposable incomes and also, to some extent, by the aftermath of 'foot and mouth'. "​ "A year ago we were running behind the market and we are encouraged that today we are at least holding our own in a very competitive environment,"​ he added. Revenue was boosted in particular by healthy sales in fish, organic food and fresh vegetables. Fish sales rose 40 per cent, organic foods 52 per cent, and inflation in fresh vegetables was 20 per cent. On Tuesday, the stock closed unchanged at 427 pence. So far this year, it has risen 7.6 per cent, compared with a 1.8 percent drop in the FT-SE Food and Drug Retailers Index.