Sainsbury’s maintains full year profit guidance after 4.7% rise in Q1 like-for-like sales
Sainsbury’s has reiterated its full year profit guidance as it posted a 4.7% rise in first quarter like-for-like sales.
In the 16 weeks to 21 June, the supermarket grew its total grocery sales by 5% while increasing general merchandise and clothing sales by 4.2%.
Sainsbury’s said the uplifts were partly due to its value proposition being stronger than ever following an improved price position against key competitors. It also grew its market share to its highest level since 2016.
Meanwhile, online grocery sales increased by 6% year-on-year due to growth in orders and basket size, as well as “very strong” On Demand growth.
Argos sales were also up, climbing by 4.4%, as the retailer benefited from the period’s warm and dry weather.
Never Miss a Retail Update!During the quarter, the supermarket launched over 450 new products, with more than 250 of these in its premium Taste the Difference category. It also made progress in rebalancing space in its supermarkets towards food, and opened seven new convenience stores and two new supermarkets, both of which are performing ahead of expectations.
Simon Roberts, chief executive of J Sainsbury plc, said: “Our winning combination of great value, outstanding quality, excellent availability and leading customer service has driven further share gains, reaching our highest market share in almost a decade.
“We’re delivering our strongest ever customer offer and many more people are choosing us for their main grocery shop.
“We know how important it is that we provide consistently great value and we have built further on our strong competitive position, improving our prices against all key competitors year-on-year.
“We’re now offering even more opportunities for customers to save on the items they buy most often through the biggest Aldi Price Match commitment in the market, covering around 800 everyday essentials. As a result, our Value for Money customer satisfaction scores are the highest they have ever been. “
Looking ahead, Sainsbury’s said it is committed to sustaining a strong competitive position, adding that it continues to expect retail underlying operating profit to be around £1 billion in the current financial year.
Roberts added: “We have great momentum, growing faster than the market for three consecutive years and we are well set to deliver another strong performance over the summer.
“Boosted by a sunny spring, we’re already off to a great start with Taste the Difference fresh food sales up 20 per cent as customers enjoy our delicious new Deli and Picnic ranges, which are perfect for sharing with friends and family.”
