Sainsbury’s posts drop in first quarter sales as it announces that CFO is to step down
Sainsbury’s has posted a 4% drop in first quarter like-for-like sales after customers cut back on non-essential items during to the cost of living crisis.
In the 16 weeks to 25 June, grocery sales fell by 2.4% while clothing and general merchandise sales declined by 10.1% and 11.2% respectively.
Simon Roberts, chief executive of J Sainsbury, said: “We really understand how hard it is for millions of households right now and that’s why we are investing £500 million and doing everything we can to keep our prices low, especially on the products customers buy most often.
“We’re working hard to reduce costs right across the business so that we can keep investing in these areas that customers care most about. The progress we are making on improving value, quality, innovation and service is reflected in our improved grocery volume market share.”
The retailer launched 371 new products in the period, including 95 new Taste the Difference products. Its new Summer Edition range performed particularly well with many lines exceeding expectations.
Meanwhile, Taste the Difference sales were up over 12% year-on-year over the Jubilee week with Taste the Difference Prosecco and clotted cream scones proving particularly popular.
Roberts added: “Our customers are watching every penny and every pound but they also look to Sainsbury’s when they want to treat themselves, particularly at special occasions. We are really connected to our customers and through strong delivery of our plan, we have outperformed the market at key events such as the Jubilee.”
Sainsbury’s has also announced that its chief financial officer Kevin O’Byrne has confirmed his intention to retire from Sainsbury’s at the end of the current financial year after six years in the role.
Following an external and internal search, he will be succeeded by Bl á thnaid Bergin, who is currently commercial and retail finance director at the supermarket.
Martin Scicluna, Sainsbury’s chairman, said: “Kevin has made an impressive and sustained contribution both as CFO and as a board member to Sainsbury’s performance. On behalf of the board I would like to thank him for his continued contribution and, when the time comes, wish him well for the future.”
He added: “Bl á thnaid’s appointment concludes an extensive CFO search process. I am delighted that our internal candidate was the strongest, with proven financial leadership.”
