Sainsburys Q1 Report 2022

Financial highlights and outlook

• Good grocery performance, with sales down 2.4% against last year’s elevated COVID-19 driven levels and 8.7%
  ahead of pre-pandemic sales
• General Merchandise and Clothing sales in line with expectations, with an improved sales trend following the first five-week period when non-essential retail was closed during lockdown last year
  o Argos sales down 7% in the last 11 weeks of the quarter, down 19% in the first five weeks
  o Sainsbury’s General Merchandise sales down 5% in the last 11 weeks, down 30% in the first five weeks
  o Clothing sales down 2% in the last 11 weeks, down 26% in the first five weeks
• Outlook unchanged; continue to expect FY22/23 underlying profit before tax of between £630m and £690m

Food First: Good volume market share performance against strong prior year comparative and ahead of the market
versus pre pandemic, reflecting improved value position and product innovation. Structurally advantaged store estate and reputation for quality also ensuring customers are consistently choosing Sainsbury’s to help them celebrate special occasions and trade up for everyday treats.

Value

• Investing over £500 million over the two years to March 2023 in keeping our prices low, funded by cost savings; continuing to inflate behind competitors3
• Sainsbury’s Quality, Aldi Price Match campaign driving secondary customer basket growth, matching Aldi on over 240 products, including the top 20 products that customers buy most often