Sainsbury's results look weak at first glance, but are actually pretty strong

Total sales increased 3.3 per cent.

Sainsbury’s has announced that, during the 12 weeks to 08 June 2013,  total sales (inc. VAT ex fuel) increased 3.3 per cent, with LFLs up 0.8 per cent.  While representing the grocer’s weakest LFL performance in over three years, when put into context this is another strong update from Sainsbury’s. LFL growth has been delivered against tough comparatives – with the same period in 2012 coinciding with the Jubilee – and, more importantly, against wider market trends, with the grocer continuing to outperform key rivals: Morrisons and Tesco. Investment in its well balanced brand proposition continues to have strong traction among hard-pressed British consumers in a polarised market.

Sainsbury’s is getting a number of things very right. Most notable has been investment into own-label architecture, which has afforded it authority to flex its offer in accordance to broadening consumer demands and capabilities. Indeed, both its premium Taste the Difference and mid-tier by Sainsbury’s sub-brands achieved strong growth during this period. This private label investment has been complemented strongly by clever, targeted promotional activity, with its Brand Match scheme being supported by more creative campaigns such as ‘Feed Your Family’ and targeted promotions such through Nectar and via coupon-at-till.  Collectively, this well-aligned own label and promotional activity is somewhat insulating Sainsbury’s in a climate where consumer loyalty is fickle and the hard discounters are excelling.

At the same time, Sainsbury’s continues to display pro-activity in capitalising on opportunities specific to the business and wider trends in the grocery market.  A focus on convenience and online, as well boosting sales in the short term is leaving the business strongly positioned for the next decade. Elsewhere, its non-food offer is relatively immature compared to its supermarket competitors; sales here continue to grow at more than twice the rate of food, highlighting the future scope for growth here.

When viewed in context, despite more subdued LFL growth, this performance can only be seen as providing further evidence in favour of Sainsburys’ current strategic focuses. While Morrisons and Tesco are both investing heavily to turn around their fortunes, the real short-term threat to Sainsbury’s will continue to come from the discounters at one end and Waitrose at the other. In response, it is important that Sainsbury’s continues to be proactive in widening its appeal, strongly leveraging private label and investing in creative promotional investment. 

Photograph: Getty Images

 Managing Director of Conlumino

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"Do not let us down": Scottish MEP receives standing ovation after begging European Parliament

While Alyn Smith won applause, the Scottish Government moved behind the scenes. 

The Scottish National Party MEP Alyn Smith was not exactly a household name before the EU referendum. 

But his impassioned speech to his fellow MEPs begging them to help Scotland stay in the EU has caught the imagination of many Remain voters.

In a session where UKIP's Nigel Farage told MEPs "virtually none of you have ever done a proper job in your lives, Smith struck a very different tone.

Waving a sheet of paper showing Scottish voters had voted to Remain, he said: "I want my country to be internationalist, co-operative, ecological, fair, European. And the people of Scotland, along with the people of Northern Ireland, and the people of London, and lots of people in Wales and England also, voted to Remain within our family of nations."

He urged MEPs to negotiate with cool heads and warm hearts.

And then, raising his voice, he told MEPs: "Please, remember this. Scotland did not let you down. Please, I beg you, cher colleagues, do not let Scotland down now."

MEPs rose to applaud the heartfelt speech. And meanwhile, hundreds of miles away in Holyrood, the Scottish Government had hit the phones.

First Minister Nicola Sturgeon announced she would be meeting European Parliament President Martin Schultz on Wednesday.

Although the SNP's promise of an independent European Scotland was shot down during the Scottish referendum, it seems this time round MEPs are more sympathetic.

Guy Verhofstadt, the former Belgium PM, who leads the Alliance of Liberals and Democrats for Europe parliamentary group has already tweeted: "It's wrong that Scotland might be taken out of [the] EU."