Sainsbury’s issues profits upgrade amid huge surge in online delivery

S a i n s b u r y ’s said the second English national lockdown in November and subsequent tiering last month helped sales soar, meaning profits for the year are now likely to be considerably higher than first thought.

The unplanned profit upgrade was revealed as supermarket bosses said sales in the three months to January 2 were up 8.6% on a like-for-like basis.

The like-for-like measure does not include the permanent closure of 120 standalone Argos stores which were not reopened after the first national lockdown in March. On a total basis, sales in the three-month period were up 6.8%.

Sainsbury’s said there was strong growth in both its grocery stores and at Argos, which remained open for click-and-collect orders, alongside huge surges in online deliveries. Argos sales rose 8.4% . Online grocery sales

jumped 128% over the period, with total digital sales up 81%, representing 44% of total sales for the group.

Around 1 .1 mi l l i o n online food orders were delivered in the 10 days leading up to Christmas.

As a result, underlying pre-tax profits for the year are expected to hit £330m, compared with previous guidance of £270m,

although this will be down on the £586m recorded last year due to Sainsbury’s agreeing to pay its £410m business rates bill.

Bosses called on the government to use Covid to hold a major review of business rates, but fell short of demanding the Tr e a s u r y extend a business rates holiday beyond April to support struggling high streets.

Sainsbury’s issued an unplanned profits upgrade.