Sainsbury (J) PLC released its Third Quarter Trading Statement for the 16 weeks to 6 January 2024, highlighting a significant increase in grocery sales and continued market outperformance. The company reported a 9.3% growth in Q3 grocery sales and an 8.6% increase in Christmas grocery sales, driven by stronger volume growth offsetting lower inflation. However, general merchandise sales experienced a decline, with Q3 sales down by 0.6% and Christmas sales down by 3.7%.
The company's Chief Executive, Simon Roberts, attributed the success to the team's focus on value, product innovation, and service. He emphasized the positive customer response to the first Nectar Prices Christmas, which helped customers save an average of £16 on an £80 Christmas shop. Sainsbury's also saw growth in Taste the Difference sales, with families treating themselves during the festive season.
Sainsbury's strategic highlights included a consistent focus on delivering great value, innovation, quality, and service, resulting in sustained sales growth despite lower inflation. The company expanded its Aldi Price Match initiative and donated every penny that customers spent on festive vegetables to Comic Relief through its Nourish the Nation partnership.
The company's outlook for 2023/24 remains positive, with an expectation of underlying profit before tax between £670 million and £700 million, driven by strong grocery performance offsetting weaker general merchandise and financial services contributions. Sainsbury's also expects to generate retail free cash flow of at least £600 million in 2023/24.
Sainsbury (J) PLC plans to share its updated strategy in the coming months, building on its efforts to put food back at the heart of the business over the last three years. The company remains committed to delivering for its customers, colleagues, and shareholders, entering 2024 with strong momentum.