UK: Sainsbury's sales fall but clothing performs well
- Q4 sales fall 1%
- Like-for-like sales down 3.1%
- Clothing and GM performing well
Sainsbury said its general merchandise and clothing business continues to perform well
UK retail group Sainsbury's has ended its nine-year run of sales growth with a decline in fourth-quarter revenues, but says its clothing business continues to perform well.
In the 10 weeks ended 15 March, sales were down 1%, while like-for-like sales fell 3.1%, both excluding fuel. The retailer blamed a fall in food prices, the later timing of Easter and unseasonable weather. Its prior year quarter also benefited from the discovery of horsemeat in its competitors' products.
Prior to this quarter, Sainsbury's had reported 36 consecutive quarters of like-for-like sales growth.
Nonetheless, the group said its general merchandise and clothing business continues to perform well, with particularly strong growth in menswear of over 23% year-on-year.
During the quarter Sainsbury announced the renewal of its collaboration with designer Gok Wan for a further 12 collections, in addition to releasing the eleventh collection of his ladies' wear.
The retailer has introduced its new general merchandise and clothing format into 53 stores, and has a further 26 planned for the first quarter.
"Although some economic indicators are showing an improvement in the health of the economy, we expect the outlook for customers to continue to be challenging for the coming year," said chief executive Justin King.
"We remain confident that our differentiated offer, supported by ‘value for values', Nectar data and Brand Match, will allow us to outperform our peers in the year ahead."
One of the biggest challenges - and opportunities - facing the apparel industry in 2015 is how best to embrace the omni-channel retail model, improve the shopping experience, and respond with new supp...
As the mind-set of the recession continues, women’s outerwear is responding by heavily promoting good value, with brands such as Primark, F&F, George, New Look, H&M and Sainsbury’s women’s Tu range, a...
Some 190 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in 2013....
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; corporate social responsibility (CSR); financial results; international trade policy...
The report is a result of extensive research to provide a comprehensive understanding of the global private label market and packaging consumption; this clearly establishes market trends, packaging dy...
The UK retailing industry registered positive growth in 2013 despite the fact that the economic climate in the country remained challenging as consumer spending habits remained under the influence of ...
- Enthusiasm for tech in outdoor apparel on rise
- 2015: Welcome to the new fashion consumer
- New American Apparel CEO sees solid platform
- Outlook 2015: What's happening with sourcing?
- Expensive US dollar hitting H&M sourcing costs
- EU exploring responsible garment supply chains
- Kanati pulls production out of Pakistan
- Gap to close Piperlime division
- Hanesbrands invests $1.5m in US hosiery plant
- US takes final step to WTO TFA implementation
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Li & Fung Limited (494) - Financial and Strategic SWOT Analysis Review
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead