IT systems support Sainsbury's growth

Sainsbury's credits better IT for improved stock control

Sales at Sainsbury's have risen 5.7 per cent

Supermarket giant Sainsbury’s says improvements in its supply chain systems were partly responsible for its tenth consecutive quarter of sales growth.

Despite reporting lower than expected growth of 5.7 per cent in the first quarter, the company says it was pleased that its systems held up under challenging conditions.

The change in weather between April and May significantly affected the stock required in stores, says Sainsbury’s chief executive Justin King.

‘Our ability to control stock levels and improve availability during an exceptionally warm April followed by a very wet May highlights the improvements we’ve made to our supply chain systems over the past couple of years,’ he said.

Sainsbury’s is increasing its focus on IT. Last month the retailer announced that the number of online customers had increased by 49 per cent and plans to invest £300m over the next three years to double web sales.

Meanwhile, DSG International, which owns electrical goods retailers Currys and PC World, increased its annual sales by 14 per cent to £7.9bn.

Internet sales surged during the year, following its decision to make Dixons a solely web-based retailer, and now represent 10 per cent of overall sales, up from three per cent. Sales at Dixons alone have risen by 182 per cent.