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South Wales Argus
3 days ago
- Business
- South Wales Argus
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. Marks & Spencer suffered some stock issues at the height of the cyber woes (Holly Williams/PA) 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.
Western Telegraph
3 days ago
- Business
- Western Telegraph
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. Marks & Spencer suffered some stock issues at the height of the cyber woes (Holly Williams/PA) 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.
Glasgow Times
3 days ago
- Business
- Glasgow Times
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. Marks & Spencer suffered some stock issues at the height of the cyber woes (Holly Williams/PA) 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.
Scotsman
3 days ago
- Business
- Scotsman
Sainsbury's gets early summer sales lift but what lies in store for investors?
'Sainsbury's is proving those doubts wrong with a strategy focused on customer loyalty, price matching the likes of Aldi, and saving costs' Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Supermarket major Sainsbury's has revealed a jump in sales and cheered its highest market share for almost a decade. The UK's second largest supermarket chain, behind market giant Tesco, said total sales, excluding fuel, rose by 4.9 per cent in the 16 weeks to June 21, compared with the year before. Advertisement Hide Ad Advertisement Hide Ad Grocery sales lifted by 5 per cent in what is the group's first quarter, with growth of 4.2 per cent for general merchandise and clothing, while the Argos business saw sales rise by 4.4 per cent. Sainsbury's ranks as the UK's second largest supermarket chain by market share., On a like-for-like basis, excluding fuel and VAT, group sales rose by 4.7 per cent in the best performance for at least a year. The chain said it had achieved its highest market share since 2016, noting that it had grown share for three years in a row. But the figures come amid further signs of sticky food price inflation, with the latest BRC (British Retail Consortium)-NIQ Shop Price Index figures showing food prices were 3.7 per cent higher year-on-year in June, up from a 2.8 per cent rise in May. Advertisement Hide Ad Advertisement Hide Ad Simon Roberts, chief executive of Sainsbury's, said: 'We're delivering our strongest ever customer offer and many more people are choosing us for their main grocery shop. The grocery giant also owns the Argos business with many stores now located within the supermarkets. '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. As a result, our Value for Money customer satisfaction scores are the highest they have ever been,' he added. The group said strong first quarter performers included Taste the Difference fresh food, which saw sales surge 20 per cent as customers snapped up picnic and deli ranges in the sunny spring and early summer weather. Advertisement Hide Ad Advertisement Hide Ad Tu Clothing sales jumped 8 per cent, driven by a 13 per cent leap for womenswear, which the group put down to better design and strong availability. Its Argos division also enjoyed a sales bounce back, with growth increasing to 4.4 per cent from just 1.9 per cent in the previous three months - the second quarter in a row of rising sales. It said trading was helped by 'warm and dry weather against a weak comparative'. The firm told investors that it was making progress on revamp efforts at the Argos business, focusing on driving more shopping visits and higher basket sizes. Sainsbury's also confirmed it was on track with guidance for the full-year, which is set to see underlying operating profits remain flat at around £1 billion as stronger sales volumes are expected to be offset by weaker profitability amid investment in price cuts. It said: '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.' Advertisement Hide Ad Advertisement Hide Ad Roberts added: 'We have great momentum, growing faster than the market for three consecutive years and we are well set to deliver another strong performance over the summer.' Reaction to the trading update from City analysts and retail commentators was largely positive. Zoe Gillespie, wealth manager at RBC Brewin Dolphin, said: 'Despite the intensely competitive UK groceries market, Sainsbury's is performing admirably well. The supermarket has posted its highest market share in almost a decade and is delivering reasonable growth in sales, against a challenging backdrop. 'The shares have risen around a quarter since hitting their lowest point since 2023 during April, as the market's concerns about Sainsbury's' ability to keep pace with lower cost competitors took their toll. But Sainsbury's is proving those doubts wrong with a strategy focused on customer loyalty, price matching the likes of Aldi, and saving costs - an approach that is beginning to yield results.' Advertisement Hide Ad Advertisement Hide Ad Pinching Aarin Chiekrie, equity analyst at investment platform Hargreaves Lansdown, said Sainsbury's was continuing to 'pinch market share off the competition'. 'Despite the top line moving higher, recent changes to employers' national insurance and minimum wages are set to bring at least £140 million of extra costs this year,' he added. 'Sainsbury's is doing what it can to trim costs throughout the business, including closing its in-store cafes and streamlining behind-the-scenes operations, but the group's guidance still points to full-year underlying retail profits remaining broadly flat at around £1bn. 'Trading, so far, has been promising, and while it's still early in the group's financial year, signs of an all-out price war among the major supermarkets hasn't materialised. If that remains the case through the rest of the year, the current profit guidance looks a touch conservative, so there could be some positive surprises for investors who are willing to remain patient.' Advertisement Hide Ad Advertisement Hide Ad Julie Palmer, a partner at business recovery consultancy Begbies Traynor, said: 'The name of the game in the supermarket world is market share and, to carry on enticing customers as it has been doing recently, Sainsbury's will need to continue to innovate at pace.
Telegraph
30-03-2025
- Business
- Telegraph
Pity the vegans when the moral high ground starts getting crowded
The turnip munchers are having another bad week. Plant-based sales are dropping, brands have been withdrawing products and Sainsbury's has just signed a 10-year deal with their main purveyor of pork that, say the supermarket and piggy provider, sets new standards in welfare as well as giving some much-needed stability for farmers. It means more space for farrowing (more room for mother sows and their little piglets), 24/7 monitoring by new AI tools and general improvements in welfare. It puts vegans in the same awkward position that Conservative leader Kemi Badenoch keeps finding herself in; having her territory occupied by Labour. As Mrs Badenoch must applaud Sir Keir Starmer's plans to cut benefits, slash the number of civil servants and banish quangos, so vegans must surely herald a supermarket's aim to improve animal welfare. For the vegan's happy place – when not chomping on jackfruit and slurping nut cream – is in being horrified by conventional farming. Nothing gets the plant-eater up in the morning quicker than the dangled prospect of a nice, juicy photo of the horror of animal farming, or, better still, fresh video footage of the gory details of enclosures and slaughter. They can then properly rent their hemp shirts, paint new slogans on placards and gear up for a nice demo or some fun milk-spilling in Waitrose. On a clear day, with a good pair of binoculars, you can see them up there on the moral high ground, chuntering about climate change and cruelty. Thus, all seems quiet from the vegan enclaves this week as they suffer from the brutal assault of a supermarket announcing not just better welfare standards but a pledge that Taste the Difference pork will be net zero by 2029. Also announced is more investment in trials into the reduction of soya in feed and, what Sainsbury's call, 'a focus on more sustainable cereal feedstocks'. Take that, says Sainsbury's, as it surreptitiously steals the vegan's bamboo shoes, eyeing indeed the full sustainable corn or apple-based wardrobe, by adding these initiatives to its other pledges such as sourcing eggs from 100 per cent free range woodland-roaming hens, improving chicken welfare and introducing a beef range with a lower carbon footprint. As vegans themselves refuse to ban avocados from their diet – the mass-produced fruit is responsible for deforestation, using up scarce water supply and is detrimental to bees – they find themselves in the uncomfortable position of having to hear meat-eaters claim that their food habits are less cruel and more environmentally protective than that of plant-fetishists. That moral high ground is getting mighty crowded. Meanwhile, you'll find me happily floundering around at ground zero, staying afloat with my cliched principles of seasonal and local. If it's crunchy, fresh and tasty, and I know where it comes from, that's good enough for me.
