Sainsbury’s enjoys increased first quarter sales
Sainsbury’s has reported a “return to volume growth and strengthening market share outperformance” during the first quarter of its 2024 financial year.
In the 16 weeks to June 24, Sainsbury’s like-for-like sales (excluding fuel) increasing year-on-year by 9.8%, with total retail (excluding fuel) sales up by 9.2%.
The supermarket retailer said that grocery performance had been particularly strong, with sales increasing by 11%. General merchandise sales also rose year-on-year by 4%, which included a 5.1% increase in Argos sales.
However, clothing sales fell by 3.7%.
Sainsbury’s said its trading outlook for the entire financial year is unchanged, as it expects to make an underlying profit before tax of between £640m and £700m for 2024.
The retailer said the increase in food sales was driven by primarily by a return to growth in sales volumes, aided by particularly strong performance during bank holidays and warmer weather at the end of the quarter.
An increase in market share gains was driven by an improved value proposition, which included the launch of the retailer’s ‘Nectar Prices’ programme in April, Sainsbury’s said.
Simon Roberts, Sainsbury’s chief executive, said: “Customers can see that prices at Sainsbury’s have improved and this combination of great value and some good weather in recent weeks means we have grown our food volumes and market share. Customers are choosing us when they want to celebrate and we grew ahead of the market over Easter, the Coronation and the bank holidays.”