Sainsbury’s has posted an “encouraging” start to the year as stronger grocery sales helped offset weaker trading across Argos, clothing and general merchandise.
The supermarket said total retail sales, excluding fuel, rose 2.7 per cent to £9.15bn in the 16 weeks to 20 June.
Sainsbury’s-branded sales increased 3.1 per cent to £8.04bn, with grocery sales up 3.6 per cent year on year.
The retailer said growth had been supported by continued investment in value, including Aldi Price Match and Nectar Prices, as shoppers remained focused on household budgets.
However, the stronger performance in food was partly offset by a 3.7 per cent decline in general merchandise and clothing sales.
Tu clothing sales fell 2.1 per cent against tough comparatives from the previous year, while general merchandise sales dropped 6.3 per cent.
Argos sales slipped 0.5 per cent over the period, as volume growth was offset by weaker average selling prices amid subdued consumer spending.
Sainsbury’s 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.”
The update comes as grocery retailers continue to compete heavily on price and loyalty offers, with shoppers still seeking value despite signs that food inflation is easing.
Roberts also pointed to the World Cup and summer sporting calendar as potential trading opportunities for the supermarket.
“With the World Cup in full swing and an exciting summer of sport ahead, I want to say a huge thank you to all our Sainsbury’s and Argos colleagues and our farmers and suppliers for showing up so well for our customers every day,” he said.
Sainsbury’s said the wider consumer backdrop remained uncertain, including the potential impact of the Middle East conflict on shoppers.
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