Sainsbury's to create 10,000 jobs with northern expansion

by mirror.co.uk - 12/11/2009

"The supermarket giant plans 50 new stores and 50 extensions over the next two years. Boss Justin King detailed the expansion plan after revealing an 18.5% leap in profits."

The chain made £307million in the six months to October 3 after pulling in an extra 800,000 shoppers a week. That has put staff on course to share a bonus of £60m-plus.

King said most of the expansion will be outside Sainsbury’s southern heartland. While it has about 20% of the grocery market south of a line between Bristol and Peterborough, its share further north is half that.

“It’s a fantastic opportunity for us,” said King. “But we don’t need anyone else to fail for us to succeed.”

He said the strength of sales at stores bought from the Co-op and Somerfield showed Sainsbury’s could compete up north. It will give over around a third of new space it develops to non-food – such as its Tu clothing range – which is growing sales twice as fast as grub.

King is also investing heavily in its online businesses, which are playing catch-up with Tesco.

He said online grocery sales rose 20% in the six months to a £500m-a-year business. The firm launched a non-food range online in July and it is being almost doubled to 8,000 items for Christmas.

King said he expects “feisty” competition at Christmas – good news for shoppers – and believes people will indulge more than last year.

More Details: http://www.mirror.co.uk/news/city-news/2009/11/12/sainsbury-s-to-create-10-000-jobs-with-northern-expansion-115875-21814927/