Argos helps struggling Sainsbury’s in high-pressure market
SAINSBURY’S said trading remains “very competitive” and warned of ongoing price pressures from the weak pound as it saw supermarket sales slip back into reverse.
The group posted a 0.5% fall in like-for-like supermarket sales, excluding fuel, in its fourth quarter to March 11, down from a rise of 0.1% in the previous three months.
Overall trading was boosted by a robust performance from its recently acquired Argos chain, which notched up a 4.3% rise in like-forlike sales over the nine weeks.
The Argos sales hike helped lift group-wide comparable sales into positive territory, up 0.3% in the fourth quarter.
Group chief executive Mike Coupe said he was “pleased” with the company’s performance.
But he added: “The market remains very competitive and the impact of cost price remains uncertain.”
Sainsbury’s blamed its fourthquarter sales slip on the later Mother’s Day and Easter this year, adding that, after adjusting for this, like-forlike sales would have been 0.1% higher. pressures LONDON’S top-flight index rose to record heights as European markets cheered a US rate hike and a snub for populists in the Dutch elections.
The FTSE 100 Index raced to a mid-session record of 7444.62, before paring gains to lift 47.31 points to an alltime closing high of 7415.95.
The rally was largely driven by the US Federal Reserve’s decision on Wednesday to raise American interest rates by a quarter of a percentage point to a range of 0.75% to 1%.
It was the second rate rise in three months, with the US central bank forecasting two further increases this year as the American economy continues to surge following the US election.
Despite the boost, the London market gave up some of its mid-session gains after the pound jumped in response to the Bank of England’s decision to keep interest rates on hold at 0.25%.
Brent crude was down 0.2% to $51.71 a barrel.
In UK stocks, Anglo American was in the ascendancy after Volcan Investments snapped up a 12% stake in the mining giant.
The £2bn grab by Volcan, the family trust of Indian billionaire Anil Agarwal, caused Anglo shares to surge more than 8%, or 103p, to 1,297.5p.
Miners also dominated the rest of the biggest risers, with Glencore up 16.3p to 341.4p and Antofagasta rising 37.5p to 844p.
Sainsbury’s eased back after it said trading remains “very competitive” and warned over ongoing price pressures from the weak pound as it saw supermarket sales slip.
The group posted a 0.5% fall in like-for-like supermarket sales, excluding fuel, in its fourth quarter to March 11, down from a rise of 0.1% in the previous three months.
Overall trading was boosted by a robust performance from its recently acquired Argos chain, which notched up a 4.3% rise in like-for-like sales over the nine weeks.
The Argos sales hike helped lift group-wide comparable sales into positive territory, up 0.3% in the fourth quarter.
Shares in the Big Four grocer fell 3.3p to 268.1p.
The biggest risers in the FTSE 100 Index were Anglo American up 103p to 1,297.5p, Glencore up 16.3p to 341.4p, Antofagasta up 37.5p to 844p, Fresnillo up 57p to 1,510p.
The biggest fallers in the FTSE 100 Index were Hikma Pharmaceuticals down 107p to 2,190p, Direct Line Insurance down 12.5p to 333.8p, Merlin Entertainments down 14.5p to 481.8p, Morrison’s down 4.1p to 235.5p.