Sainsbury’s said it expects “to continue to outperform the grocery market”, despite subdued consumer confidence, as it reported a boost to first-quarter sales.
The supermarket chain delivered a 2.7% increase in total sales, excluding fuel, to £9.1bn in the 16 weeks to June 20.
Sainsbury’s revenues rose 3.1% to £8bn, with a strong grocery performance offsetting a 3.7% decline in general merchandise and clothing to £438m.
The retailer said it saw another quarter of volume growth and market share gains in its food business thanks to ongoing investment in its value proposition.
Argos sales slipped 0.5% to £1.1bn. The retailer said the business saw encouraging volume growth in the period of 2.2%, despite strong comparatives of sustained and warm dry weather last year.
Looking ahead, Sainsbury’s reiterated its full-year outlook and expects to deliver an underlying operating profit of between £975m and £1.1bn despite uncertainty around how the conflict in the Middle East will impact customers and the business.
Chief executive Simon Roberts said: “Customers are looking for value now more than ever. We are consistently delivering outstanding quality at great value, so more people are choosing Sainsbury’s for their big weekly shop.
“This has driven an encouraging start to the year with continued volume growth and market outperformance.
“We’ve kept our strong focus on value, with the biggest Aldi Price Match in the market, across supermarkets and convenience stores, and Nectar Prices on around 11,000 products.
“Leading product innovation and outstanding quality fresh food set our offer apart, with standout performances in summer favourites like berries, barbecue and deli.
“And we’re achieving record customer satisfaction scores on availability in supermarkets and complete orders in Groceries Online, reflecting strong operational momentum.
“This combination is really delivering at the big customer moments and we outperformed the market at Mother’s Day, Eid al Fitr, Easter and the May heatwave.”
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