Sainsbury’s says its first Nectar Prices Christmas helped it to attain quantity development forward of the grocery market over the festive season however gross sales weren’t up throughout the board.
The UK’s second-largest grocery store chain by market share reported a 9.3% rise in grocery gross sales over the 16 weeks to six January.
It said that stronger quantity development – the variety of merchandise offered – offset decrease inflation, with prospects additionally buying and selling as much as its Taste the Difference vary.
But the corporate, which additionally owns Argos, stated gross sales of Christmas basic merchandise had been down on final yr, with clothes gross sales down 1.7% over the interval. Christmas clothes gross sales fell 6%.
As a end result, Sainsbury’s maintained its revenue steerage for the monetary yr.
The firm stated it was anticipating to report underlying revenue earlier than tax of between £670m and £700m.
The up to date forecast was doubtless a key consider shares falling by 4% on the market open.
Its figures chime with trade information suggesting a powerful Christmas for grocery however value of residing pressures persevering with to hit demand for a lot of different items.
Separate figures launched by the British Retail Consortium and Barclays confirmed spending rose beneath the speed of inflation within the economic system.
Lidl and M&S seem to have been the principle winners amongst meals shops by way of market share.
Greggs, the bakery chain-turned food-on-the-go operator, additionally claimed a win on Wednesday.
It stated that demand for seasonal merchandise resembling its Festive Bake, Christmas lunch baguette and scorching drinks helped ship a better-than-expected 9.4% rise in like-for-like gross sales in the course of the fourth quarter of 2023.
Its buying and selling replace additionally recommended that inflationary pressures within the enterprise had been easing. Shares rose by greater than 6%.
Sainsbury’s revenue outlook meant the corporate was on track to report broadly related earnings to the £690m achieved in its final monetary yr.
It not too long ago introduced a £200m funding in pay rises for its employees.
Chief government Simon Roberts advised buyers he would share a method replace subsequent month.
“We’ve worked hard to really deliver for our customers this quarter and have grown grocery volumes ahead of the market for the fourth Christmas in a row,” he stated in an announcement.
“More customers are choosing to shop at Sainsbury’s, recognising our determined focus on value, product innovation and service.
“This was our first Christmas powered by Nectar Prices, serving to prospects save a median of £16 on an £80 Christmas store.
“We delivered our best ever value Christmas roast and customers bought record numbers of pigs in blankets, mince pies and sparkling wine. Taste the Difference sales grew ahead of the market as families treated themselves.
“Across the quarter, Argos carried out forward of opponents in a extremely promotional market. Argos delivered a powerful Black Friday efficiency however a weaker Christmas towards an distinctive efficiency final yr.”
Source: information.sky.com”