Sainsbury’s has published single.1pc lift in like-for-like sales within the festive period following a less strong performance at Argos required the shine off strong grocery sales.
The supermarket recorded a couple.3pc increase in food sales within the 15 days to The month of january 6, boosted with a 8.2pc begin online grocery sales along with a 7.3pc sales increase at its convenience shops.
However, despite a good investment in Argos’s speedy Steps For Success delivery service along with a roll-from Argos concessions to Sainsbury’s supermarkets, the audience recorded single.4pc stop by general merchandise sales throughout the third quarter.
The autumn generally merchandise sales is in stark contrast to 2016 when its acquisition of Argos helped turbo-charge Sainsbury’s festive period by adding a 3.7pc increase in sales.
Mike Coupe, leader, stated that “Argos stores in Sainsbury’s supermarkets performed particularly well and Argos saw record sales over the Black Friday period”. The Sainsbury’s boss added that both general merchandise and clothing “grew share inside a challenging market”.
Sainsbury’s added that although it was “careful concerning the consumer atmosphere around ahead”, it expects to create as much as £20m more in cost savings from the Argos takeover than first thought. The supermarket stated it now likely to achieve between £80m and £85m of underlying earnings when compared with its previous guidance of £65m.
As a result underlying profit is going to be moderately in front of City forecasts.
The mixed fortunes of Sainsbury’s food and general merchandise division is fresh proof of the difficulties facing non-food retailers. The 2009 week industry figures says food like-for-like sales increased by 2.6pc during December, while non-food like-for-like sales came by 1.9pc.
Meanwhile, discount supermarket Lidl has announced record sales over Christmas, with turnover rising 16pc in December. The discounter, which opened up nine new stores recently taking its total to 693, presently has 5pc share from the UK’s grocery market. Lidl, like Aldi, doesn’t split out its like-for-like sales.