Sainsbury's buoyed by M&S cyber disruption and sunny weather
The UK's second largest supermarket said the hack at M&S, which left some of its shelves empty at the height of the crisis, helped drive customers into Sainsbury's stores.
Chief executive Simon Roberts said: 'If a particular store is lower on stock, in the moment, a customer will go somewhere nearby.'
'Everybody has benefited a little bit as a result (of the attack),' he added.
The group saw customers turn to Sainsbury's for lunchtime food and sandwiches in the early days of the M&S disruption, which forced the group to suspend all online orders and impacted some stock availability.
M&S has since resolved the stock issues and has reopened its website for orders with aims for its online operations to be fully restored within four weeks.
Sainsbury's said sunny weather also helped total sales jump in its first quarter, up 4.9% in the 16 weeks to June 21.
The group said it had achieved its highest market share since 2016, having grown share for three years in a row.
Its latest update showed grocery sales lifted by 5% in the quarter, with growth of 4.2% for general merchandise and clothing, while the Argos business saw sales rebound by 4.4%.
On a like-for-like basis, excluding fuel and VAT, group sales rose by 4.7% in the best performance for at least a year.
Warm weather boosted demand for Taste the Difference fresh food, which saw sales surge 20% as customers snapped up picnic and deli ranges.
Tu Clothing sales jumped 8%, driven by a 13% leap for womenswear, which the group put down to better design and strong availability.
Its Argos business also enjoyed a sales bounce back, with growth increasing to 4.4% from 1.9% in the previous three months – the second quarter in a row of rising sales.
It said Argos trading was helped by 'warm and dry weather against a weak comparative'.
The group said it was making progress on efforts to revamp the Argos division, focusing on driving more shopping visits and higher basket sizes.
But the figures come amid further signs of mounting food price inflation, with the latest BRC (British Retail Consortium)-NIQ Shop Price Index figures on Tuesday showing food prices were 3.7% higher in June, up from 2.8% in May.
Simon Roberts, chief executive of Sainsbury's, said: 'We know how important it is that we provide consistently great value and we have built further on our strong competitive position, improving our prices against all key competitors year-on-year.
'We're now offering even more opportunities for customers to save on the items they buy most often through the biggest Aldi price match commitment in the market, covering around 800 everyday essentials.'
Sainsbury's confirmed it was on track with guidance for the full-year, which is set to see underlying operating profits remain flat at about £1 billion as stronger sales volumes are expected to be offset by weaker profitability amid investment in price cuts.
'Profit delivery will be supported by continued growth in Nectar profit contribution and industry-leading, cost-saving delivery and will be weighted more towards the second half versus last year,' according to the group.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
41 minutes ago
- The Guardian
F1 chief wants to see record-breaking Silverstone stay on calendar for good
The Formula One chief executive, Stefano Domenicali, has said he would like the British Grand Prix at Silverstone to remain on the F1 calendar for ever, with the event set to host what is expected to be the largest meeting in the sport's history, reaching half a million people over four days this weekend. The British GP, which has been on the calendar since F1 began in 1950, is expected to sell out with record numbers and Domenicali acknowledged it was part of a large and thriving F1 business in Britain, which he hopes can be improved by working closer with the UK government when he meets the prime minister, Keir Starmer, and other government officials at Downing Street on Wednesday afternoon. Last year Silverstone extended its contract with F1 to host the race until 2034, one of many long-term deals the sport has concluded recently, including Austria extending to 2041 last week, but Domenicali said the British GP was such a unique event for the sport in size and interest it could negotiate a deal of even greater longevity. 'Silverstone has the right characteristics to stay for ever in the calendar,' he said. 'There's no other places where you can develop such a huge event in the UK. I don't see any other places, to be honest. 'In the past the relationship with the Silverstone promoters has been intense and they know that. Our approach is to find the best situation. I don't see Silverstone not being able, if they want, to do what others have already done. We've done already last year a big step, never done before.' The meeting on Wednesday, to celebrate F1's 75th anniversary, will include senior figures from F1, including drivers and team principals as well as apprentices and members of the all-female F1 Academy. It is hoped to be part of a developing relationship with the government to work better with the sport, notably in areas including infrastructure and over the effects of Brexit on F1, with seven of the 10 teams based in the UK. F1 is now an increasingly important industrial player in the UK. It is worth £12bn to the economy annually and employs 6,000 people directly, with a further 41,000 in the 4,500 associated supply chain companies. 'I will highlight to the prime minister the technology and the centres of excellence that are in the UK,' Domenicali said. 'Of the fact that with Brexit there are complications for movements, there are complications for the visas. I'm saying that because I think that it's relevant to keep the possibility for people to be attracted to work here. Because if you lose that link, then immediately the centre could be moving other places.' Sign up to The Recap The best of our sports journalism from the past seven days and a heads-up on the weekend's action after newsletter promotion Complications include the carnet system now required for moving equipment into Europe, which has knock-on effects in costs, time and notably sustainability. Visa issues for entry to the UK also still exist for those coming to work here in F1 and Domenicali hoped what is a continuing dialogue would prove fruitful. 'We have already formally presented in order to see if in the agenda of the government there will be a sort of attention to this, it's our duty to present respectfully in the right way to them,' he said. 'Of course, there is the hope for the government to understand if there is a way to have some exceptions or a way to work around the needs that we have. We will not decide the priority on which your government will dictate the agenda for the next step but we're going to do it in the right way.'
The Guardian
an hour ago
- The Guardian
US halts weapons shipments to Ukraine over fears stockpiles are too low
The US is halting some shipments of weapons to Ukraine amid concerns that its own stockpiles have declined too much, officials said Tuesday, a setback for the country as it tries to fend off escalating attacks from Russia. Certain munitions were previously promised to Ukraine under the Biden administration to aid its defences during the more than three-year-old war. The pause reflects a new set of priorities under President Donald Trump and came after defence department officials scrutinised US stockpiles and raised concerns. 'This decision was made to put America's interests first following a review of our nation's military support and assistance to other countries across the globe,' White House spokesperson Anna Kelly said in a statement. 'The strength of the United States Armed Forces remains unquestioned – just ask Iran.' That was a reference to Trump recently ordering US missile strikes against nuclear sites in Iran. The Pentagon review determined that stocks were too low on some weapons previously pledged, so pending shipments of some items won't be sent, according to a US official who spoke on condition of anonymity to provide information that has not yet been made public. The defence department did not provide details on what specific weapons were being held back. 'America's military has never been more ready and more capable,' spokesperson Sean Parnell said, adding that the major tax cut and spending package moving through Congress 'ensures that our weapons and defence systems are modernised to protect against 21st century threats for generations to come.' The halt of some weapons from the US is a blow to Ukraine as Russia has recently launched some of its biggest aerial attacks of the war, in an escalating bombing campaign that has further dashed hopes for a breakthrough in peace efforts championed by Trump. Talks between the sides have ground to a halt. The US stoppage was first reported by Politico. To date, the US has provided Ukraine more than $66bn worth of weapons and military assistance since Russia invaded its neighbour in February 2022. Over the course of the war, the US has routinely pressed for allies to provide air defence systems to Ukraine. But many are reluctant to give up the hi-tech systems, particularly countries in eastern Europe that also feel threatened by Russia. Trump met with Ukrainian leader Volodymyr Zelenskyy on the sidelines of the Nato summit last week and had left open the possibility of sending Kyiv more US-made Patriot air defence missile systems, acknowledging they would help the Ukrainian cause. 'They do want to have the antimissile missiles, OK, as they call them, the Patriots,' Trump said then. 'And we're going to see if we can make some available. We need them, too. We're supplying them to Israel, and they're very effective, 100% effective. Hard to believe how effective. They do want that more than any other thing.' Those comments reflect a change of thinking about providing weapons to Ukraine across the administration in recent months. In testimony before lawmakers in June, defence secretary Pete Hegseth said he had moved quickly to quash wasteful programmes and redirect funding to Trump's top objectives. Hegseth said a negotiated peace between Russia and Ukraine, which has been promoted for months by Trump, makes America look strong, even though Moscow is the aggressor in the conflict. He also said the defence budget includes hard choices and 'reflects the reality that Europe needs to step up more for the defence of its own continent. And President Trump deserves the credit for that.' The defense secretary told lawmakers last month that some US security spending for Ukraine was still in the pipeline, without providing details. But he said such assistance – which has been robust for the past two years – would be reduced.
Times
2 hours ago
- Times
The royal gravy train must be halted
The news that the royal train is to be retired to a museum by 2027 was the public relations equivalent of a tethered goat: an enticing morsel designed to distract attention from less palatable aspects of the royal finances. Faced with the royal family's booming income at a time of hardship for many Britons, officials who guard the royal image clearly decided something had to be offered up. Consigning the train's nine carriages to history was an obvious choice, a painless sacrifice. Costing some £1 million to maintain annually, it was rarely used, enjoying just two outings last year, costing £78,000. It will come as news to most taxpayers that such an extraordinary vehicle still exists, and that they have been shelling out seven figures for it to mainly languish in the sidings. But the royal financials released this week are concerning for the information they do not contain. • King Charles net worth — Sunday Times Rich List 2025 Two sets of figures were released, one relating to the monarchy as a whole, and another to the income of the Prince of Wales from the Duchy of Cornwall. In contrast to the rest of government, where balancing books is a neuralgic issue, the royal finances are in rude health. Since 2011, when David Cameron concocted a ludicrously generous funding formula for the sovereign grant, the annual payment to the monarchy, its value has soared. From £31 million in 2013 it will be £132 million in each of the next two years. Even when money for the £369 million refurbishment of Buckingham Palace is subtracted there will still be tens of millions left to fund royal operations. The sovereign grant formula is bizarre. Some 260 years ago, George III surrendered the earnings from the crown's hereditary lands in return for a stipend. Those assets became the Crown Estate which, despite its name, has nothing to do with the monarchy. Under the Cameron arrangement the grant is calculated at 10 per cent of Crown Estate profits, with a 2 per cent temporary uplift for the palace works. Licence earnings for offshore wind farms on the estate-owned seabed have seen profits rocket to over £1 billion. This is a temporary boost for the estate but not for the royals. The 2011 agreement includes a 'gold ratchet' that means the grant can stay the same or go up, but not fall. Together with his £27 million income from the Duchy of Lancaster the King is well provided for. Even though the palace knows the Crown Estate is a national, not a royal, asset it persists with the fiction that it is. Supposedly, its surrender in the 18th century is still providing a net gain for the public. A spokesman said this week: 'The sum surrendered by the King is far greater than the sum returned as the sovereign grant, and thus there is no additional burden on taxpayers.' To this fantasy is added the secrecy of Prince William over the tax he pays on income from the Duchy of Cornwall. Once public, the amount is now simply described as the 'highest rate'. The duchy is a 'private estate with a commercial imperative'. That means a company, surely? Yet it pays no corporation tax or CGT. It also makes charities, schools and the NHS pay for using premises. William's desire to be a champion for the underprivileged is undermined by this profiteering. Just like the Crown Estate, the duchies of Lancaster and Cornwall are national assets, not 'private' ones. It is time for the government to consolidate all three into a National Estate and pay working royals simple stipends while maintaining royal infrastructure. The gravy train must end.
