Sainsbury’s has change into the newest retailer to put up sturdy Christmas gross sales figures, saying it achieved a “record” festive season.
The UK’s second largest grocery store group, which additionally consists of Argos, mentioned it now anticipated annual income for the yr to March in the direction of the higher finish of its beforehand guided vary between £630m and £690m.
Underlying pre-tax income, for its 2021-22 monetary yr, got here in at £730m.
The downwards shift displays funding throughout the grocery sector in workers pay and value as budgets are squeezed by the energy-led value of dwelling disaster.
Total gross sales, excluding gas, grew by 5.2% over the 16 weeks to 7 January in contrast with the identical interval final yr.
That was pushed by inflation, the chain mentioned, with “relatively resilient volume trends”.
Sainsbury’s mentioned early Christmas purchasing helped gross sales leap over the newest quarter as buyers seemed to unfold the price of the festive season.
Chief government Simon Roberts mentioned: “We delivered the absolute best Christmas for purchasers as thousands and thousands of households managed their budgets in another way, internet hosting bigger gatherings once more and treating themselves at house.
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“Customers shopped early, buying Christmas treats and fizz more than once and looked for deals, taking advantage of Black Friday and other seasonal offers.
“Argos provided nice worth and high quality, and, as practice and postal strikes disrupted the nation, prospects appreciated its reliability and comfort.
“Sales were also boosted by the World Cup as people celebrated more at home.”
Resilience within the face of the price of dwelling disaster has been a theme of the post-Christmas retail reporting season thus far.
Market chief Tesco releases its replace on Thursday.
But Sainsbury’s shares fell on the open.
Neil Wilson, chief markets analyst at markets.com wrote: “With food inflation running at 13% at the moment I am not seeing a heck of a lot to cheer here…fag packet arithmetic suggests there is not a lot of volume growth (contraction?) here, but we need to see more detail.
“Perhaps that’s the reason shares are off 3% or so this morning. Profits are anticipated to be on the higher finish of the steering vary of £630m to £690m, however stays cautious on the buyer outlook.
“Not a single mention of the word ‘margin’ in the release is suspect”.
Among different main retail names updating the market on Wednesday was JD Sports Fashion.
It reported whole income progress of over 20% within the six-week Christmas purchasing interval to the tip of December.
The firm raised its full yr revenue forecast because of this, saying that it now anticipated revenue earlier than tax and distinctive gadgets to come back in above £1bn.
Source: information.sky.com”