Cuts wont impact retail spend, says Sainsbury chief
Justin King, chief executive of supermarket chain Sainsbury’s, has said that the forthcoming Comprehensive Spending Review will not have the impact which some fear, as people have already adjusted their spending habits.
King predicts that the cutbacks will have little or no effect on consumers as the real shift occurred two years ago when the banking crisis first hit. Instead he predicts a rational rather than panicked retrenchment with shoppers continuing to demand quality.
Sainsbury’s bullish forecast comes as the supermarket posted a rise in like for like sales of 2.9% over the second quarter, a feat of which King is proud “I don’t think anyone else has a 2 in front of their sales figures,” he told The Telegraph.
An ongoing expansion drive has seen the store open 1.5m sq/ft of space this year and is pushing non food initiatives, such as sport, to catch rivals such as Tesco.