Sainsbury’s warns that Iran conflict will impact both the business and shoppers
Sainsbury’s has warned that the conflict in the Middle East will impact both its customers and the business as it reported an increase in full year sales and profit.
In the year to 28 February, sales excluding fuel increased by 4.9% to £25.9 billion as grocery sales rose by 5.2% with consistently strong volume growth.
Subscribe to TRBClothing sales climbed by 4.8% after a strong spring/summer performance was offset by unseasonal second half weather. Argos sales were also up, rising by 0.7% to £4.1 billion.
However, general merchandise sales declined by 3.2% in the period, primarily due to an expected volume decline driven by a decision to allocate more space to food.
Simon Roberts, chief executive of J Sainsbury, said: “More and more customers are choosing Sainsbury’s for more of their shopping, trusting us to deliver great value day in day out.
“The conflict in the Middle East means customers are even more focused on the cost of living and we are absolutely committed to making sure everyone gets the best possible value when they shop with us.
“By staying relentlessly focused on the things that matter most – value, quality, availability and service – we have outperformed the market for the sixth year in a row.”
While profit edged up 2% to £619 million, retail underlying operating profit fell by 1.1% to £1.025 billion as a result of higher costs and investment in value in a competitive market.
Sainsbury’s said it has made a positive start to the new financial year, with grocery volume growth ahead of the market.
However, it said conflict in the Middle East will have an impact on its performance. As a result, it currently expects total underlying operating profit to come in at between £975 million and £1.075 billion in the current financial year.
Roberts said: “We will do everything we can to support our customers and colleagues over the coming months, with ts said: positive start to the new financial year, with continued strong grocery momentum.
“I would like to thank all our colleagues, farmers and suppliers for their brilliant commitment and hard work – it’s their dedication that makes such a difference for our customers every time they shop with us.”
