Sainsbury's announces big rise in Basics sales

26/03/2009

Credit crunched shoppers are increasingly switching to budget lines in supermarkets, it has been suggested.

New business figures released by the Sainsbury's chain show that sales of the "Basics" range have increased by 60 per cent year on year.

Online sales also saw an increase of 20 per cent, as more and more customers bought their groceries on the internet.

Overall, sales at stores over the last three months of 2008 were found to have risen by 2.7 per cent over the equivalent period in 2007.

The announcement follows a strong annual profits declaration from supermarket Morrison's, which specialises in cheaper deals.

Net income at the chain rose by seven per cent last year.

Speaking to the BBC yesterday, Sainsbury's chief executive Justin King said: "People are spending perhaps more money with supermarkets, perhaps a little bit less from takeaways and restaurants."

Graham Spooner at financial experts The Share Centre added: "Competition in the sector is going to remain fierce during 2009, but Sainsbury's results are encouraging… Sainsbury's is appearing to connect with consumers in recession times."

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