SAINSBURY (J) PLC has released its First Quarter Trading Statement for the 16 weeks to 22 June 2024. The company has achieved the biggest market share gains of any grocer during the quarter, with consistent net switching gains as more customers choose Sainsbury's for their main shop. The General Merchandise and Clothing performance reflects improvement in clothing trend offset by weaker seasonal general merchandise sales. The company has also commenced a previously announced £200 million share buyback program and expects to return at least £250 million to shareholders once the sale of Sainsbury's Bank's Core Banking Business to NatWest has completed.
In terms of sales performance, Sainsbury's has seen a 4.2% increase in Grocery sales and a 4.8% increase in General Merchandise sales, while Argos sales declined by 6.2%. The company's total retail sales (excluding fuel) increased by 2.6%, with like-for-like sales (excluding fuel) growing by 3.0%.
Simon Roberts, Chief Executive of J Sainsbury plc, expressed satisfaction with the market-beating grocery performance and the early progress made against the Next Level Sainsbury's plan. He highlighted the company's focus on delivering the best combination of value and quality in the market, with 98% of big baskets including Nectar Prices or Aldi Price Match. Roberts also emphasized the company's commitment to innovation, with the launch of 400 new products in the quarter, almost half of which were Taste the Difference.
The company's strategic highlights include a consistent focus on great value, quality, and service, leading to increased volume growth and basket size. Sainsbury's has also seen an improvement in value perception, with 98% of big baskets including Nectar Prices or Aldi Price Match products. The company has increased its Summer innovation by 10% year on year with more than 400 new products, almost half of which are Taste the Difference. Additionally, the company has reported an increase in Groceries Online participation and rapid growth in its OnDemand service.
SAINSBURY (J) PLC has also seen positive improvement in Clothing sales momentum, particularly in Womenswear, benefiting from renewed focus on core ranges but offset by the impact of unseasonal weather in recent weeks. The role of Nectar within the business continues to develop, with the company reaching its highest Nectar participation to date over the Easter Bank Holiday, and almost 18 million customers now digital Nectar collectors.
Overall, the company remains focused on delivering strong performance in its core grocery business, driving innovation, and enhancing customer loyalty through its Nectar program.