Sainsburys Q3 Report 2023
Trading Highlights
More customers are doing more of their grocery shopping at Sainsbury’s. We have outperformed the market every week of this financial year and delivered volume growth ahead of the market for a fourth consecutive Christmas. This reflects consistently great value and service, a positive customer response to our first Nectar Prices Christmas and customers trading up to Taste the Difference. While Argos outperformed a weak and highly promotional general merchandise market, sales declined ahead of Christmas against an exceptionally strong performance last year.
- Q3 Grocery sales up 9.3%, Christmas Grocery sales up 8.6%, with stronger volume growth offsetting lower inflation
- Q3 General Merchandise sales down (0.6)%, up 1.5% excluding impact of Argos closure in the Republic of Ireland
- Christmas General Merchandise sales down (3.7)%, (1.3)% excluding impact of Argos closure in the Republic of Ireland, reflecting significant benefit to sales last year from the postal strike and strong demand for energy saving products
- Q3 Clothing sales down (1.7%), Christmas Clothing sales (6.0)%
- Q3 retail (exc. fuel) sales up 6.5%. Like-for-like sales growth up 7.4%. Inc. fuel retail sales up 4.4% with fuel sales down (7.2)%
- Outlook: We continue to expect underlying profit before tax in 2023/24 of between £670 million and £700 million, with a strong Grocery performance offsetting weaker General Merchandise and Financial Services contributions. We continue to expect to generate retail free cash flow in 2023/24 of at least £600 million
Simon Roberts, Chief Executive of J Sainsbury plc, said:
“We’ve worked hard to really deliver for our customers this quarter and have grown grocery volumes ahead of the market for the fourth Christmas in a row. More customers are choosing to shop at Sainsbury’s, recognising our determined focus on value, product innovation and service.
“This was our first Christmas powered by Nectar Prices, helping customers save an average of £16 on an £80 Christmas shop. We delivered our best ever value Christmas roast and customers bought record numbers of pigs in blankets, mince pies and sparkling wine. Taste the Difference sales grew ahead of the market as families treated themselves.
