Sainsbury’s posts additional £60m profit as champagne sales soar | J Sainsbury’s

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Sainsbury’s will generate £60m more in annual profit than expected after enjoying better food and drink sales over Christmas as shoppers bought more champagne than ever before.

The UK’s second-largest supermarket said grocery sales rose 0.8% in the six weeks to January 8, excluding Boxing Day, when it opted to close this year, as more people ate dinner at home with the Omicron wave of Covid-19 putting Moisturizing on trips. to restaurants and bars.

Total sales fell 2.4% during that period as the company said problems with the supply of technology, toy and toys affected trade at the group’s Argos chain, but Sainsbury said profit margins on non-food items had improved as it cut the discount. Online grocery sales are down 15% year over year, but still nearly double their pre-pandemic levels.

Sainsbury said it now expects to post a base profit of 720 million pounds for the year ending January 8, up from 660 million pounds, as earnings expectations were boosted by better-than-expected grocery sales, improved margins on non-food items and lower bad debt than expected. feared. in his banking arm.

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Simon Roberts, CEO of Sainsbury, said: “I am really pleased with the way we have introduced customers to this Christmas. More people are eating at home and our significant investment in value, innovation and service has led to market share growth.”

Sainsbury said it saw its biggest-ever sales of champagne, contributing to its best-ever trade in the new year, while there was an uptick in last-minute online orders from Argos.

The late increase came at the end of a tough quarter as sales at existing stores fell 4.5%. Sales at Argos were down 16% in the three months to January 8, and apparel was down about 3%, but Sainsbury said this was partly due to lower unprofitable discounts. It said sales of full-priced apparel rose 38%.

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