Sainsbury's Says Weak Non-Food Weighs On Quarterly Sales Growth

By Reuters
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Sainsbury's Says Weak Non-Food Weighs On Quarterly Sales Growth

Sainsbury's, Britain's second largest supermarket group, kept its annual financial guidance as it reported a 3% rise in first-quarter underlying sales, though robust grocery sales were partially offset by weather-related weakness in non-food areas.

The group which, with a UK market share of 15.2%, trails only Tesco, said grocery sales rose 4.8% in the 16 weeks to June 22.

The group noted that it added some 400 SKUs to its range this quarter, close to half of which were part of its Taste The Difference range.

However, general merchandise and clothing sales fell 4.3% and sales at the group's Argos business fell 6.2%, reflecting both poor early summer weather which dented sales of seasonal categories and strength in sales in the same period last year.

Sainsbury's said it still expected full-year 2024/25 retail underlying operating profit of between £1.01 billion and £1.06 billion, which would be growth of 5% to 10%.


'Next Level Sainsbury's'

"We are pleased with our market-beating grocery performance and the early progress we're making against our Next Level Sainsbury's plan," Simon Roberts, Sainsbury's chief executive, said in a statement. 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.

Noting that some 98% of shopping baskets at the retailer include products included in its Nectar Prices or Aldi Price Match promotions, Roberts added, "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."

Additional reporting by ESM.

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