Sainsbury’s grocery volumes increase for the fourth consecutive Christmas reflecting “great value and service” and a “positive customer response” to the grocer’s first-ever Nectar Price Christmas.
In a trading update for the 16 weeks to January, 6, 2024, Sainsbury’s like-for-like sales (excluding fuel) grew 7.4%, while like-for-like sales (including fuel) increased 5.3%.
The supermarket’s grocery sales increased 9.3%, while Christmas grocery sales were up 8.6%.
General merchandise sales dropped 0.6% in the quarter and 3.7% during Christmas, impacted by the closure of Argos stores in the Republic of Ireland.
Clothing sales also declined 1.3% in the same period, while Christmas clothing sales saw a fall of 6%.
Nectar price power
Chief executive Simon Roberts said: “We’ve worked hard to really deliver for our customers this quarter and have grown grocery volumes ahead of the market for the fourth Christmas in a row. More customers are choosing to shop at Sainsbury’s, recognising our determined focus on value, product innovation and service.
“This was our first Christmas powered by Nectar Prices, helping customers save an average of £16 on an £80 Christmas shop.
“We delivered our best-ever value Christmas roast and customers bought record numbers of pigs in blankets, mince pies and sparkling wine. Taste the Difference sales grew ahead of the market as families treated themselves.
“Across the quarter, Argos performed ahead of competitors in a highly promotional market. Argos delivered a strong Black Friday performance but a weaker Christmas against an exceptional performance last year.”
Real living wage
Roberts went on to praise staff for Sainsbury’s success. He said: “Our success is down to our entire team who consistently deliver market-leading customer service. I’d like to thank every one of my colleagues and am pleased we will be kicking off the new financial year with an industry-leading pay increase, investing a record £200m to continue to pay the real living wage across the country.
“We enter 2024 with strong momentum and next month we will share our updated strategy, building on all we’ve done to put food back at the heart of Sainsbury’s over the last three years.
“There is a lot to be excited about and we remain absolutely committed to deliver for our customers, colleagues and shareholders.”
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