Grocery giant Sainsbury’s has said it is expecting a “strong” trading performance over the festive period after revealing an acceleration in sales.
The UK’s second largest supermarket firm said group revenues increased by 2.3% to £17.2 billion for the 28 weeks to September 14, compared with the same period a year earlier.
This came as like-for-like retail sales, excluding fuel, grew by 3.4% for the period, driven by a 4.2% jump in the most recent quarter.
Sainsbury’s said this was partly boosted by an improved performance in its Argos business.
Sales across Argos were 5% lower for the half-year, after its decline slowed to 1.4% in the second quarter from a 7.7% slump in the first quarter.
Meanwhile, sales in the Sainsbury’s business grew by 4.6% in the half-year, after growth improved to 5.1% in the most recent quarter as it continued to improve its share of the UK grocery market.
The retailer said it was boosted by strong sales of its Taste the Difference premium range and its Nectar membership pricing.
Simon Roberts, chief executive of Sainsbury’s, said: “Our food business is going from strength to strength and we’re making the biggest market share gains in the industry, with continued strong volume growth.
“More and more customers are coming to us for their big food shop, recognising our winning combination of value, quality and service.
“As we head into the festive season, there is real energy and excitement at Sainsbury’s and Argos and we’re expecting another strong performance.”
Meanwhile, pre-tax profits dropped by 51% to £76 million because of the impact of the restructuring of its financial services division through a number of major sales.
Its total underlying pre-tax profit was up 4.7% to £356 million.
This article was written by Henry Saker-Clark from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.