Sainsbury’s Christmas sales jump as food inflation eases back

However, the firm witnessed a drop in trade for its clothing and Argos businesses.

Henry Saker-Clark
Wednesday 10 January 2024 07:46 GMT
The supermarket reported stronger Christmas sales (Andrew Matthews/PA)
The supermarket reported stronger Christmas sales (Andrew Matthews/PA) (PA Wire)

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Sainsbury’s has revealed a jump in sales over the key Christmas period, with shoppers buying bigger volumes of products as food and drink inflation slowed down.

However, the firm witnessed a drop in trade for clothing and in its Argos business.

The UK’s second largest supermarket chain said total retail sales, excluding fuel, grew by 4.9% over the six weeks to January 6, with grocery sales rising by 8.6%.

Over the past year, grocery revenues have been boosted by higher prices, as food manufacturers have passed on cost increases to many customers.

But on Wednesday, Sainsbury’s said it saw shoppers purchasing more products amid “lower inflation” over the latest period.

The chain said its customers bought record numbers of pigs in blankets, mince pies and sparkling wine over Christmas.

The strong grocery performance helped to offset a 4.2% decline from Argos – driven by the closure of its Argos Ireland business – and a 6% fall for Christmas clothing sales.

It came as total retail sales, excluding fuel, grew 6.5% over 16 weeks to January 6.

Grocery sales were 9.3% higher for the full quarter.

Simon Roberts, chief executive of Sainsbury’s, said: “We enter 2024 with strong momentum and next month we will share our updated strategy, building on all we’ve done to put food back at the heart of Sainsbury’s over the last three years.

“There is a lot to be excited about and we remain absolutely committed to deliver for our customers, colleagues and shareholders.”

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