Sainsbury’s boosted by strong grocery performance
Sainsbury’s has posted a 9.8% increase in first quarter like-for-like sales after it benefited from offering lower prices on its most popular products
In the 16 weeks to 24 June, total retail sales climbed by 9.2% after trade was boosted by a strong grocery performance where sales were up 11%.
General merchandise sales also grew with an uplift of 4%, which included a 5.1% increase from Argos. However, clothing sales declined by 3.7%.
Simon Roberts, chief executive of J Sainsbury, said: “We are putting all of our energy and focus into battling inflation so that customers get the very best prices when they shop with us, particularly now as household budgets are under more pressure than ever.
“Food inflation is starting to fall and we are fully committed to passing on savings to our customers. Since March, we have invested over £60 million in lowering prices, leading on price cuts across more than 120 essentials like bread, butter, milk, pasta, chicken and toilet roll.”
Stronger sales growth in the food category was driven by a return to volume growth. This was led by the retailer’s convenience stores and supermarkets as customers continued to return to shopping in-store.
Meanwhile the retailer’s online grocery offering benefited from improved availability, technology upgrades, operational efficiency and strengthening of value messaging.
Roberts continued: “Customers can see that prices at Sainsbury’s have improved and this combination of great value and some good weather in recent weeks means we have grown our food volumes and market share. The progress we have made improving availability, value and convenience at Argos means we are well placed to deliver for customers in Argos’s 50th birthday year.”
Sainsbury’s is maintaining its full year outlook it continues to expect a pre-tax underlying profit of between £640 million and £700 million.
