Sainsbury’s has reported a fall in gross sales as customers reduce on spending amid intensifying “strain on family budgets”.
The corporate noticed a 4% drop in like-for-like gross sales, excluding gasoline, over the 16 weeks to 25 June, in contrast with the identical interval final yr.
The hunch was largely pushed by weak point in gross sales of basic merchandise and clothes, which incorporates its Argos model. Argos gross sales fell by 10.5% over the interval.
Sainsbury’s additionally noticed its grocery gross sales dip by 2.4% compared with final yr’s ranges, which had benefitted from pandemic restrictions that noticed fewer folks consuming in eating places and cafes.
Simon Roberts, chief govt of the grocery store group, stated the corporate is “working exhausting to scale back prices” throughout its enterprise.
“We actually perceive how exhausting it’s for hundreds of thousands of households proper now and that is why we’re investing £500m and doing the whole lot we are able to to maintain our costs low, particularly on the merchandise clients purchase most frequently,” he stated.
“The strain on family budgets will solely intensify over the rest of the yr and I’m very clear that doing the precise factor for our clients and colleagues will stay on the very prime of our agenda.”
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He stated some customers are switching from brand-name merchandise to Sainsbury’s cheaper own-brand alternate options.
Sainsbury’s stated across the Queen’s Jubilee gross sales of beers, wines and spirits have been at “the best ever outdoors of Christmas and Easter, with Pimm’s, glowing wine and champagne promoting significantly effectively”.
The corporate additionally revealed that gasoline gross sales jumped 48.5% over the interval, pushed by will increase within the worth of petrol and diesel.
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Motoring teams have criticised petrol retailers for failing to decrease gasoline costs regardless of wholesale prices dropping over the previous few weeks.
Sainsbury’s stated it nonetheless anticipated its underlying pre-tax revenue for the yr to be between £630m and £690m.