Sainsbury's seeks longer Sundays

SUPERMARKETS group Sainsbury's has called on the Government to let stores open for longer than six hours on Sundays, particularly around the Christmas period. 'If the Government relaxed the six-hour trading regulations, it would be in everyone's interest,' said chief executive Sir Peter Davis. 'It would be really good if they showed some flexibility in the run-up to Christmas.'

Davis admitted Sainsbury's had found the Sunday before Christmas difficult. 'We were happy with the service we gave customers this Christmas, except for the Sunday when we were very busy,' he explained.

The call to Government came as Sainsbury's delivered an ebullient message on recent sales and expressed confidence in this year's growth prospects. Sales excluding new space grew 5% in the 12 weeks to 5 January while total sales improved by 6%.

Stripping out petrol, where prices fell sharply over the autumn, underlying sales were 6.4% ahead. Over the festive season - the six weeks to 5 January - sales excluding petrol and new space rose by 6.8%.

Davis said: 'These figures are a very significant improvement over last year. We worked very hard to improve our food and non-food offers and we had a stronger promotional package. We learnt a lot from last year and we were more confident this time.'

Of the year ahead, Davis said: 'I am cautiously optimistic.' But the City was not impressed by today's figures and the shares fell 5 1/2p to 367p. 'Total sales growth at just 6% is disappointing and there is still no evidence that Sainsbury's has turned the corner and is closing the gap with Tesco,' said Dave McCarthy at Schroder Salomon Smith Barney.

Andrew Kasoulis of CSFB said: 'These figures don't answer many of the main issues. Over the next six to 12 months, the company will have to show if it can prove itself or not.'

Davis played down weekend reports suggesting 100 store managers are about to lose their jobs. 'A hundred managers who need extra help are being assessed and receiving coaching,' he said. 'Some will move to smaller stores and some will take early retirement, but it is a wild exaggeration to say 100 will be made redundant.'

Tesco will make its Christmas trading statement on Tuesday.