Sainsbury’s reports Christmas sales surge
Sainsbury’s has posted an 8.6% uplift in third quarter sales after sales over the festive trading period climbed by 9.3%.
In the 15 weeks to 2 January, grocery sales increased by 7.4%. This included a 128% uplift in online sales.
Meanwhile, general merchandise sales rose by 6% with Argos sales up 8.4%. Clothing sales were also up, growing by 0.4%.
Sainsbury’s chief executive Simon Roberts said many customers had to change their Christmas plans at the last minute due to the introduction of tighter Covid-19 restrictions, which meant the supermarket sold smaller turkeys and more lamb and beef than during a usual festive period.
He added: “While people had smaller gatherings, they still treated themselves, with Taste the Difference sales up 11%. Premium champagne sales were up 52%, Taste the Difference party food was popular throughout December and people did more home baking than usual with mincemeat sales up 24%. Customers still wanted New Year’s Eve at home to feel special and we sold a record number of steaks.”
After forgoing business rates relief of £410 million, Sainsbury’s now expects to report an underlying pre-tax profit of at least £330 million in the year to March 2021. This is £60 million higher than its previous forecast.
Roberts added: “As we enter our third phase of tighter restrictions and national lockdowns, my number one priority remains keeping our colleagues and customers safe. The last few months have been really tough for many people and we are all dealing with a lot of change and uncertainty again.”
