Summer puts a shine on sales at Sainsbury’s

Retailer working with suppliers to keep prices down

Sainsbury’s has hailed its best supermarket sales after a revamp of its ranges and deals on popular summer food such as British strawberries.

The supermarket giant said like-for-like retail sales including the recently-bought Argos chain rose 2.3% in its first quarter as it launched 430 new or improved food products.

Sales were boosted by rising inflation, as well as the later timing of Easter and Mother’s Day, but the group said it also rung up a 1.9% rise in the number of transactions at its tills.

The sales hike came as a marked bounce back on the 0.3% growth seen the previous quarter as Sainsbury’s cheered a rebound in total grocery sales, which leapt 3% higher.

This offset a slowdown in general merchandise sales – including Argos – to 1% from 1.5% the previous quarter amid an overhaul following last year’s £1.4 billion takeover of Home Retail Group.

Chief executive Mike Coupe said the firm had worked hard with suppliers to keep a lid on prices.

He added: “The market is competitive and we continue to manage cost price pressures closely.”

The chain’s boss remained tight-lipped on reports Sainsbury’s is now looking to buy Nisa, the network of more than 2,500 independently-owned convenience stores, in a deal worth close to £130 million.

It is understood Sainsbury’s also met with senior executives from convenience chain McColl’s, which is supplied by Nisa, as it attempts to seal the deal in a response to Tesco’s £3.7bn merger with wholesaler Booker.

Mr Coupe declined to comment, except to say the group is “always looking at potential opportunities”, some of which “don’t come off”.

Retail experts said the group had enjoyed a good start to its new financial year.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said the recent heatwave had helped to boost sales at both Sainsbury’s and Argos.

The market is competitive and we continue to manage cost price pressures closely MIKE COUPE, CEO, SAINSBURY’S