Sainsbury’s new boss set to report sales rise
SAINSBURY’S IS expected to reveal a jump in sales over the past three months, in Simon Roberts’ first update as the supermarket group’s new boss.
He took over as the FTSE 100 grocer’s new chief executive at the start of June, replacing Mike Coupe.
Retail analysts predict that his tenure will start on a solid footing, with supermarkets experiencing a sales uplift in recent months due to the coronavirus lockdown.
In April, Sainsbury’s reported an eight per cent jump in sales for the first seven weeks of the quarter, which started on March 8.
Experts said they expect a particularly “reassuring” update from the grocer, when it updates the market on Wednesday July 1.
Sainsbury’s is expected to reveal more sustained growth for the period to the end of June, as initial volatility and cost rises have started to stabilise.
Despite strengthening sales, analysts have also suggested that the increase in costs caused by reacting to the pandemic could weigh on earnings for the year.
AJ Bell investment director Russ Mould said: “Intriguingly, overall earnings estimates for Sainsbury’s financial year to March 2021 have sagged even during the pandemic, to reflect the material increases costs, notably staff and logistics, increased discounting to shift excess clothing stock and also delays to ongoing productivity programmes.
“The company has not taken up Government support in the form of the furlough schemes or delayed VAT payments, although Sainsbury’s has accepted £450 million in business rates relief for the year.”