Sainsbury’s sales increase driven by ‘return to volume growth’

Like-for-like sales excluding fuel increased 9.8% and like-for-like sales including fuel rose 3.9%.

Grocery sales were up 11% in this period, while general merchandise and Argos sales grew 4% and 5.1% respectively. Clothing sales declined 3.7%.

Sainsbury’s has been focusing on its “value proposition” and says its market share gains have been driven by this as it launched Nectar prices in April and recently rebranded its value range to the name Stamford Street.

The group’s outlook remains the same as it expects FY23/24 underlying profit before tax to be between £640m and £700m.

Sainsbury’s results come one week after the big four grocers faced MPs’ questions over accusations of profiteering.

Chief executive Simon Roberts said: “We are putting all of our energy and focus into battling inflation so that customers get the very best prices when they shop with us, particularly now as household budgets are under more pressure than ever. Food inflation is starting to fall and we are fully committed to passing on savings to our customers. 

“Since March, we have invested over £60m in lowering prices, leading on price cuts across more than 120 essentials like bread, butter, milk, pasta, chicken and toilet roll. Prices on our top 100 selling products are now lower than they were in March, against a market where prices have gone up.

“Customers have also saved over £90m since we launched Nectar Prices in April. In addition, we’re offering great value through Stamford Street, our entry price range, and our biggest-ever Aldi Price Match campaign. All of this is underpinned by the continued delivery of our cost-saving programmes.

“Customers can see that prices at Sainsbury’s have improved and this combination of great value and some good weather in recent weeks means we have grown our food volumes and market share. 

“Customers are choosing us when they want to celebrate and we grew ahead of the market over Easter, the coronation and the bank holidays. The progress we have made improving availability, value and convenience at Argos means we are well placed to deliver for customers in Argos’ 50th birthday year.

“Our colleagues are so important to delivering leading standards of customer service and we continue to do everything we can to support with the cost of living. Colleagues tell us how much they appreciate the free food in stores, distribution centres and contact centres, and we have now extended this indefinitely as well as offering additional discounts to help save money over the summer.”