Sainsbury’s has posted a rise in its first-quarter sales spurred by strong online growth as new boss Simon Roberts says the grocery business has “changed fundamentally”.
The supermarket chain posted an 8.5% uplift in overall sales excluding fuel in the 16 weeks to June 27, with like-for-like sales up 8.2%.
Sainsbury’s grocery sales rose 10.5% during the period while general merchandise sales increased 7.2%, bolstered by a 10.7% uplift in Argos sales.
By contrast, the grocer’s clothing sale slumped 26.7% during the period.
Sainsbury’s online sales grew by 87% year on year, with nearly half of new online grocery customers also first-time Sainsbury’s shoppers.
The retailer’s SmartShop tool, which allows shoppers to scan their own groceries and use a separate checkout, also comprised 37% of average store sales in the quarter.
The grocer said coronavirus had impacted profits by approximately £500m, although this would be broadly offset by business rates relief and strong grocery sales growth.
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Sainsbury’s said it expected its full-year results to be in line with previous expectations.
Chief executive Simon Roberts said: “Our business has changed fundamentally from four months ago. We have more than doubled our weekly sales of online groceries in recent weeks, SmartShop now accounts for more than half of sales in some supermarkets and Argos sales were strong while operating as an online-only business for almost 12 weeks.
“Warm weather boosted food sales and sales in seasonal categories in Argos, but sales of clothing and fuel and trading in city centre convenience stores were all significantly down year on year as a result of lockdown.”
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