Sainsbury’s has reported a rise in sales that it credits to “consistent investment in our customer proposition” and has increased its guidance for the full year.
The supermarket’s like-for-like sales excluding fuel rose 8.4% while like-for-like sales including fuel increased 3.2%.
Group revenue rose 3.5% to £16.9bn in the 28 weeks to September 16, but profit before tax decreased 27% to £275m compared to £376m in the same period last year.
Grocery sales increased 10.1%, which helped drive “record market share gains”. General merchandise sales edged up 1.1% while clothing sales declined 8.4%.
Sainsbury’s has been focusing on its customer proposition to drive “strong trading momentum” and it said it is “confident” heading into the peak trading period.
It expects its underlying profit before tax in 2023/24 to be between £670m and £700m – the upper end of its previous guidance range of £640m to £700m.
The supermarket chain is now looking to “build on the success” of its “food first” approach and will host a strategy update in February.
Chief executive Simon Roberts said: “Food is firmly back at the heart of Sainsbury’s. We’ve never been more competitive on price and our focus on value, innovation and service is giving more customers more reasons to shop with us.
“We know people are still finding things tough and we’re working harder than ever to reduce our costs, putting the money back into our customers’ pockets through lower prices on the products they buy most often.
“I’m pleased to say food inflation is coming down and we are passing savings on to customers. We’ve rolled out Nectar Prices to over 6,000 products and the vast majority of customers are now shopping with Nectar, saving over £450m since April.
“We have extended and increased our colleague discount and free food during shifts indefinitely and, thanks to the hard work across our entire team, we’re delivering leading customer service and availability. I want to thank all of my colleagues for their fantastic efforts.
“We’re ready to give customers at Sainsbury’s and Argos everything they want to have a brilliant Christmas. We’re helping everyone to treat themselves to fantastic value and more delicious new food than ever before.
“As we head into this key trading period, we are encouraged by our strong momentum and we remain fully focused on delivering for customers and shareholders.”
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