Sainsburys Q1 Report 2023
Lower prices on most popular products driving return to volume growth
Trading Highlights
Continued strong Grocery momentum, reflecting investment in value, innovation, service and availability, driving a return to volume growth and strengthening market share outperformance1. General Merchandise growth driven by further Argos market share gains2, with strong Consumer Electronics sales offsetting weaker early Summer seasonals performance.
- Like-for-like sales (exc. fuel) up 9.8%. Total Retail (exc. fuel) sales up 9.2%
- Strong Grocery performance, with sales up 11%
- General Merchandise sales up 4%, with Argos sales up 5.1%
- Clothing sales down 3.7%
- Outlook unchanged; continue to expect FY23/24 underlying profit before tax of between £640 million and £700 million and to generate at least £500 million of Retail free cash flow
Simon Roberts, Chief Executive of J Sainsbury plc, said:
“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. Since March, we have invested over £60 million in lowering prices, leading on price cuts across more than 120 essentials like bread, butter, milk, pasta, chicken and toilet roll. Prices on our top 100 selling products are now lower than they were in March, against a market where prices have gone up. Customers have also saved over £90 million since we launched Nectar Prices in April. In addition, we’re offering great value through Stamford Street, our entry price range and through our biggest ever Aldi Price Match campaign. All of this is underpinned by the continued delivery of our cost saving programmes.
“Customers can see that prices at Sainsbury’s have improved and this combination of great value and some good weather in recent weeks means we have grown our food volumes and market share. Customers are choosing us when they want to celebrate and we grew ahead of the market over Easter, the Coronation and the bank holidays. The progress we have made improving availability, value and convenience at Argos means we are well placed to deliver for customers in Argos’s 50th birthday year.”
