Strong performance from one of our key tenants Sainsbury’s in its Q1 trading update, with grocery sales up 11%.
Performance benefitted from ‘Food first’ strategy and cost saving initiatives. CEO Simon Roberts highlighted £1.3bn of operating cost savings over the last 3 years, which has been reinvested in lower prices for consumers.
“Prices on our top 100 selling products are now lower than they were in March, against a market where prices have gone up.” We may now be starting to see falling rates of food price inflation.
Shore Capital Markets Clive Black also pointed to the fact that virtually all growth has been achieved like-for-like given limited new space.