Sainsbury’s reports a slight increase in sales and profits during its first half, claiming significant market share gains.
- The retailer’s operating profit reached £503 million, marking a 3.7% rise driven by grocery volume growth.
- Increased consumer preference for Sainsbury’s own-brand products contributed to improved sales figures.
- The Nectar loyalty programme saw a 6% rise in participation, with substantial savings for customers.
- CEO Simon Roberts expresses confidence in Sainsbury’s strategy and future growth potential.
Sainsbury’s has announced a modest increase in sales and profits for the first half, attributing its performance to substantial market share gains. The company’s retail underlying operating profit reached £503 million, an increase of 3.7%, primarily driven by strong growth in grocery volumes. However, this gain was somewhat mitigated by a reduced contribution from Argos.
The company has attributed its success to an increased consumer shift towards its own-brand products, as shoppers look for value during the ongoing cost-of-living crisis. CEO Simon Roberts stated that the food business is experiencing robust growth and commented on the company’s significant market share gains in the industry, particularly in fresh food categories.
Sainsbury’s Nectar loyalty programme recorded a 6% increase in participation over the past year. With over 11 million customers actively involved, the programme has helped shoppers save a total of £2 billion since its inception, enhancing customer loyalty and retention.
Furthermore, Sainsbury’s premium product line, Taste the Difference, saw an 18% jump in sales, which Roberts described as the strongest premium private label growth in the market. The company’s efforts in boosting value perception among customers have been fruitful, outpacing market trends across whole basket categories.
While Sainsbury’s clothing and home offerings saw a 4.1% increase in sales, there was a slight decline of 1.5% in overall general merchandise and clothing sales. Argos experienced a 3.8% rise in the second half, driven by demand for technology and homeware products, despite a slow start. The retailer remains optimistic about sustaining profit growth and cash flow throughout the year.
Sainsbury’s remains optimistic about its financial year, focusing on delivering value and sustaining operational strength.
