Supermarkets still thriving

19 November 2001

Supermarkets still thriving

By FWi staff

SUPERMARKET giants Sainsbury and Safeway are expected to reveal healthy first-half figures, continuing the strong growth in the sector.

Safeway, Britains fourth biggest chain, said same store sales rose 5.4% in the 16 weeks to mid-October, reports The Daily Telegraph.

Sainsbury, the second largest supermarket in the country, is expected to unveil profits of 310-322 million before tax and exceptionals, compared to 300m last year.

The Independent reports that the sector has seen sales growth running at 5% due to food price inflation and a break in big price wars.

However, the Financial Times reports that Sainsbury is facing problems with its online grocery service, despite a recent revamp of the service.

The newspaper says customers have complained about the stability of the system and the time required to carry out a transaction.

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