Sainsbury’s has posted a 7.1% increase in retail sales over the festive trading period after investing in value, innovation, service and availability.
In the six weeks to 7 January, grocery sales rose by 7.1% while general merchandise sales came in stronger than expected with growth of 7.4%.
Meanwhile Argos sales climbed by 7.1% as customers took advantage of its fast track delivery and click and collect services during Royal Mail strikes.
The results meant that Sainsbury’s third quarter retail sales in the 16 weeks to 7 January rose by 5.2% with like-for-like growth of 5.9%.
Looking ahead Sainsbury’s said it will remain cautious on the consumer backdrop, but now expects underlying pre-tax profit for the year to March 2023 to be towards the upper end of its guidance range of £630 million to £690 million. It also expects to generate retail free cashflow of around £600 million, ahead of its previous guidance of at least £500 million.
