Sainsbury’s Q1 sales jump 2.6% as it hails market share gains
The retailer continues to expect retail underlying operating profit of between £1.01bn and £1.06bn and growth of between 5% and 10% versus for the full year
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Sainsbury’s has revealed that its retail sales rose 2.6% and also hailed its market share gains during the 16 weeks ended 22 June 2024.
Sales at Sainsbury’s alone rose 4.2%, with grocery sales up 4.8% but its general merchandise and clothing sales dropped 4.3%.
The retailer stated that the sales drop was down to improvement in clothing trend offset by weaker seasonal general merchandise sales.
On the other hand, sales at Argos fell 6.2% against a particularly strong comparative period with significantly lower seasonal sales and weaker consumer electronics demand, notably in gaming.
Despite this Sainsbury’s stated that it had the biggest market share gains of any grocer during the quarter with consistent net switching gains.
The company also commenced the previously announced £200m share buyback programme which is set to be completed in FY24/25.
The retailer continues to expect retail underlying operating profit of between £1.01bn and £1.06bn and growth of between 5% and 10% versus for the full year.
Simon Roberts, chief executive of J Sainsbury plc, said: “We are pleased with our market-beating grocery performance and the early progress we’re making against our Next Level Sainsbury’s plan. We’ve been winning from competitors every month for 15 months, as more and more people are choosing Sainsbury’s for their big weekly shop.
“We are laser focused on delivering the best combination of value and quality in the market and our customers are recognising that with 98% of big baskets including Nectar Prices or Aldi Price Match.”
He added: “Innovation continues to be a top priority and we launched 400 new products this quarter, almost half of which were Taste the Difference, which continues to outperform a strong premium market. Our Summer ranges are the perfect complement to this Summer of Sport and we’re gearing up for Wimbledon this week and England’s quarter final match on Saturday night.
“Our food business is going from strength to strength and I would like to thank all of my colleagues and our suppliers and farmers for the brilliant job they are doing every day to deliver for all our customers.”
