Sainsbury’s has reported "encouraging" recent trading, despite ongoing uncertainty over the impact of the Middle East conflict on its shoppers.
The UK’s second-largest supermarket chain was buoyed by stronger growth in its core grocery business, though its general merchandise division, including the Tu clothing brand, and Argos both experienced declines.
Total retail sales, excluding fuel, increased by 2.7 per cent to £9.15 billion in the 16 weeks to June 20, compared with the same period a year earlier.
Sales of the Sainsbury’s brand grew 3.1 per cent to £8.04 billion over the quarter, with grocery sales up 3.6 per cent year on year.
Bosses suggested the firm had recorded growth supported by investment into value, such as through its Aldi price match and Nectar price discounts.
Nevertheless, grocery growth was partly offset by a 3.7 per cent sales fall in its general merchandise and clothing business.
This included a 2.1 per cent decline in its Tu clothing arm in the face of tough comparisons with a year earlier, while general merchandise – which includes homeware, technology and other items – sales slid 6.3 per cent.
The group said sales at its Argos business dipped 0.5 per cent as positive volume growth was “offset by the impact of subdued consumer spending on average selling price”.
Chief executive Simon Roberts said: “Customers are looking for value now more than ever. We are consistently delivering outstanding quality at great value, so more people are choosing Sainsbury’s for their big weekly shop.
“This has driven an encouraging start to the year with continued volume growth and market outperformance.
“With the World Cup in full swing and an exciting summer of sport ahead, I want to say a huge thank you to all our Sainsbury’s and Argos colleagues and our farmers and suppliers for showing up so well for our customers every day.”
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