Sainsbury’s posts strong Christmas sales
Sainsbury’s has said it won grocery market share for the sixth consecutive Christmas period as the supermarket grew its sales by 4.9% in its third quarter.
In the 16 weeks to 3 January, grocery sales increased by 5.4% while general merchandise sales recorded a small decline of 1.1% following softer demand for clothing due to mild weather.
Sainsbury’s attributed the growth to investments made in the first two years of its Next Level plan, which included strengthening operations and technology, as well as investing in stores. It said the combination of Aldi Price Match, Nectar Prices and personalised Your Nectar Prices went down well with customers, leading to increased loyalty and bigger trolley shops.
Fresh food sales rose by 8% during the quarter as premium Taste the Difference fresh food sales climbed by 15%.
Subscribe to TRBMeanwhile, online grocery sales sales increased by 14% boosted by On Demand delivery sales growth.
Sainsbury’s said Argos continued to make progress with its transformation strategy despite a 1% fall in sales as it faced a tougher general merchandise market and weakened consumer confidence.
Simon Roberts, chief executive of J Sainsbury, said: “We have won grocery market share for the sixth consecutive Christmas period, again delivering our winning combination of value, quality, service and availability for customers.
“More customers switched to Sainsbury’s, trusting us for both great value essentials and premium Taste the Difference products in their big Christmas shop and we were the only major grocer to grow items in the basket.”
Looking ahead, Sainsbury’s said it is continuing to expect to deliver full year retail underlying operating profit of more than £1 billion.
Roberts added: “We have real confidence in our momentum as we head into the final quarter and remain focused on helping our customers get great value for money and delivering for all our stakeholders.”
