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J Sainsbury PLC on Tuesday reported an improved first-quarter, with grocery sales on the up, and its Argos arm also delivering. The London-based grocer said in the 16 weeks to June 24, total retail sales excluding fuel grew 9.2% annually. The figure excludes fuel. Also excluding fuel, like-for-like sales climbed 9.8% on-year. Fuel sales alone fell 21%. Grocery sales rose 11%, while general merchandise sales improved 4.0%, helped by a 5.1% climb in the Argos arm alone. Clothing sales fell 3.7%, however. ‘We are putting all of our energy and focus into battling inflation so that customers get the very best prices when they shop with us, particularly now as household budgets are under more pressure than ever. Food inflation is starting to fall and we are fully committed to passing on savings to our customers,’ Chief Executive Simon Roberts said. Sainsbury’s said first-quarter growth was ‘led by’ convenience stores and supermarkets, with customers continuing to return to stores, a far cry from pandemic times. Sainsbury’s added: ‘Stronger sales growth was driven primarily by a return to volume growth, helped by a particularly strong performance over bank holidays and warmer weather towards the end of the quarter.’ Looking ahead, Sainsbury’s kept its outlook unchanged. It expects underlying pretax profit to be between £640 million and £700 million, compared to £690 million in financial 2023, and to £730 million in financial 2022. Further, it still anticipates annual retail free cash flow to fall by around 22% to at least £500 million, from £645 million in financial 2023. Retail free cash flow was £503 million in financial 2022. The company’s last financial year ended on March 4. Sainsbury’s will release its half-year results for the 28 weeks ending September 16 on November 2. Sainsbury’s shares were down 1.5% at 270.40 pence each in early dealings on Tuesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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