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J Sainsbury PLC on Tuesday backed its guidance as a ‘market-beating’ grocery performance helped offset a drop in sales at Argos. Shares in Sainsbury fell 4.3% to 246.71 pence in London on Tuesday. The wider FTSE 100 was down 0.5%. For the 16 weeks to 22 June 2024, the supermarket chain said total sales rose 4.2% on-year. Grocery sales alone rose 4.8%. Sainsbury’s said total retail sales, excluding fuel, rose 2.6%, while like-for-like sales climbed 3.0%. The like-for-like measure also excludes fuel. ‘We are pleased with our market-beating grocery performance and the early progress we’re making against our next level Sainsbury’s plan. We’ve been winning from competitors every month for 15 months, as more and more people are choosing Sainsbury’s for their big weekly shop,’ Chief Executive Simon Roberts said. Citing Kantar data, Sainsbury’s said it made the ‘biggest market share gains of any grocer’ in the 14 weeks to June 9. Sainsbury reported volume growth has remained strong as inflation has slowed, despite tough weather comparatives in recent weeks. Away from grocery, the picture was less bullish for the firm. General Merchandise & Clothing sales were down 4.3%. Argos sales fell 6.2%. ‘Sainsbury’s General Merchandise & Clothing performance reflects improvement in clothing trend offset by weaker seasonal general merchandise sales,’ it said. ‘Argos sales declined against a particularly strong comparative period with significantly lower seasonal sales and weaker consumer electronics demand, notably in gaming.’ Looking ahead, the firm still expects retail underlying operating profit between £1.01 billion and £1.06 billion, growth between 5% and 10% on-year. It continues to generate at least £500 million of retail free cash flow. Roberts added: ‘Our summer ranges are the perfect complement to this summer of sport and we’re gearing up for Wimbledon this week and England’s quarter-final match on Saturday night.’ Copyright 2024 Alliance News Ltd. All Rights reserved.
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