LONDON -- J. Sainsbury will delay new-store investment as a result of the government's new guidelines on out-of-town retail developments, David Sainsbury, chairman, said at the annual meeting here.
R> Part of its expansion, Sainsbury said, will be in its Savacentre hypermarkets. The retailer operates 10 of these hypermarkets and sees the potential for up to 25 units, depending on planning arrangements and finding suitable sites, Sainsbury said at the annual meeting.
Sainsbury also told shareholders, "Sales inflation continues to be negative at present." Same-store sales at constant prices rose 0.5% in the first 12 weeks of the current fiscal year. Net sales increased 7.1% in the 12-week period compared with the same period a year earlier, Sainsbury said.
"Tight control of costs, continued growth in volume and excellent buying means that we are seeing an improving profit position," he said. "Our subsidiaries are also continuing to achieve a good performance."
Sainsbury said the company has begun a wide-ranging review of operations in its supermarkets and corporate office. "The benefits from head office and retail changes, net of reinvestment, are expected to build up to a running rate of 65 million pounds per annum by March 1995," he said. "We plan to achieve these benefits through efficiencies in procuring equipment, materials and services, as well as improvements in productivity."