LONDON (MNI) – Major UK retailer J Sainsbury total sales rose 7.5%
in the 14 weeks through January 8 2011 and like-for-like sales grew
5.4%, according to an interim management statement released Wednesday.

J Sainsbury also said that it created 6,000 new jobs over that
period.

Commenting on the data, Justin King, Chief Executive said:

“The business continues to perform well in a challenging consumer
environment, as customers are faced with fuel and VAT increases,
combined with uncertain employment prospects,”

Sainsbury’s annoucement follows a raft of other interim statements
from the big players in the retail sector with the trading figures
included in those statements giving market analysts an early indication
of how the exceptionally cold pre-christmas weather has affected retail
sales.

On Tuesday UK retailer Marks and Spencer’s said that its total
sales rose 4.0% in the 13 weeks through January 1 2011 and reported
like-for-like sales grew 2.8%.

The upmarket retailer estimates that the exceptionally cold
pre-christmas weather, which many analysts expect to impact official
retail sales data, reduced food sales by 1% and general merchandise
sales by 3%.

Marks and Spencer said that it expects tough trading conditions in
2011.

“We continue to expect the trading conditions ahead to be more
challenging as consumers’ disposable incomes come under pressure from
increased VAT rates and the impact of public spending cuts. In addition,
we are facing increased commodity prices and significantly tougher
comparatives,” the interim statement said.

In another interim statement, released Monday, Morrisons said that
sales saw a slight increase in the six weeks to January 2.

In the six weeks to 2 January total sales excluding fuel were up by
3.1% (4.7% including fuel). Like for like sales grew by 1.0% (4.0%
including fuel), the statement said.

Morrisons also said that 2011 will be a challenging year with
disposable income coming under increasing pressure.

Debenhams plc, one of the UK’s leading department store groups also
released an interim statement which showed like-for-like sales for the
19 weeks to January 2011 increased by 0.3% including VAT and decreased
by 1.3% excluding VAT.

Rob Templeman, Chief Executive of Debenhams, said:

“Looking forward, we are cautious about the robustness of consumer
sentiment for the remainder of the financial year,”

–London newsroom: 4420 7862 7492 e:mail ukeditorial@marketnews.com

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