Supermarket Sainsbury’s (SBRY.L) has notched a jump in sales as it cheered its highest market share for almost a decade.

The UK’s second largest supermarket said total sales, excluding fuel, rose by 4.9% in the 16 weeks to June 21.

Grocery sales lifted by 5% in the group’s first quarter, with growth of 4.2% for general merchandise and clothing, while the Argos business saw sales rebound by 4.4%.

On a like-for-like basis, excluding fuel and VAT, group sales rose by 4.7% in the best performance for at least a year.

The group said it had achieved its highest market share since 2016, saying it had grown share for three years in a row.

But the figures come amid further signs of mounting food price inflation, with the latest BRC (British Retail Consortium)-NIQ Shop Price Index figures on Tuesday showing food prices were 3.7% higher in June, up from 2.8% in May.

Simon Roberts, chief executive of Sainsbury’s (SBRY.L), said: “We know how important it is that we provide consistently great value and we have built further on our strong competitive position, improving our prices against all key competitors year-on-year.

“We’re now offering even more opportunities for customers to save on the items they buy most often through the biggest Aldi Price Match commitment in the market, covering around 800 everyday essentials.”

The group said strong first quarter performers included Taste the Difference fresh food, which saw sales surge 20% as customers snapped up picnic and deli ranges in the sunny spring and early summer weather.

Tu Clothing sales jumped 8%, driven by a 13% leap for womenswear, which the group put down to better design and strong availability.

Its Argos business also enjoyed a sales bounce back, with growth increasing to 4.4% from 1.9% in the previous three months – the second quarter in a row of rising sales.

It said trading was helped by “warm and dry weather against a weak comparative”.

The group said it was making progress on revamp efforts at the Argos division, focusing on driving more shopping visits and higher basket sizes.

Sainsbury’s (SBRY.L) confirmed it was on track with guidance for the full-year, which is set to see underlying operating profits remain flat at around £1 billion as stronger sales volumes are expected to be offset by weaker profitability amid investment in price cuts.

“Profit delivery will be supported by continued growth in Nectar profit contribution and industry-leading cost saving delivery and will be weighted more towards the second half versus last year,” according to the group.

View Comments