Sainsbury’s reports almost 10% Q1 sales growth

By William Dodds

- Last updated on GMT

Sainsbury's posted strong sales number during Q1. Credit: Sainsbury's
Sainsbury's posted strong sales number during Q1. Credit: Sainsbury's

Related tags Sainsbury's financial results Groceries Price Food Food industry

UK supermarket chain Sainsbury’s saw an almost 10% year-on-year sales increase during the first quarter of the 2023-24 financial year.

Sainsbury’s’ like-for-like sales (excluding fuel) rose by 9.8% in Q1, the brand announced in its latest trading statement. 

That included an 11% increase in grocery sales compared with the same period for 2022-23, with general merchandise sales up 4% and Argos sales rising by more than 5%. 

The results have not changed the company’s profit projection for 2023-24, with pre-tax profit expected to come in between £640m and £700m.

Price reductions

Sainsbury’s chief executive Simon Roberts credited the investment the group has made in lowering prices as a driver behind the sales growth.

“Prices on our top 100 selling products are now lower than they were in March, against a market where prices have gone up,” Roberts added.

“Customers have also saved over £90m 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.”

Return to volume growth

Responding to the news, manager of the quality shares portfolio at investment service firm Wealth Club, Charlie Huggins, hailed the group’s “return to volume growth” boosted by the warmer weather in recent weeks and the King’s Coronation bank holiday weekend.

“Sainsbury's has worked hard to lower prices in the face of intense competition,” Huggins said.

“The launch of Nectar prices, where Nectar card holders save money on everyday items, seems to have been well received and has helped the group to hold its own against Tesco and the German discounters.”

In related news, flavouring brand McCormick posted 8% year-on-year sales growth for the second quarter of 2023​.

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