Argos puts in strong performance in Sainsbury’s Q3

Sainsbury’s has this morning (11 January) reported its third quarter trading highlights – showing volume market share gains and a record Christmas.

General merchandise growth was stronger than expected, with Argos continuing to gain market share.

Notably, Argos performed ‘exceptionally well’ over the key Christmas week, with Sainsbury’s saying that customers turned to its stores in supermarkets for value and reliable last minute Christmas gifting.

Overall, Q3 (the 16 weeks to 7 January 2023) retail sales (excluding fuel) were up 5.2%. Like for like sales were up 5.9% reflecting inflation and relatively resilient volume trends.

Q3 grocery sales were up 5.6% and general merchandise sales were up 4.6%.

In terms of Christmas sales, these were up 7.1% for grocery, 7.4% for general merchandise and 5.1% for clothing.

Profits are expected to be towards the upper end of the guidance range of £630m to £690m.

“We delivered the best possible Christmas for customers as millions of households managed their budgets differently, hosting larger gatherings again and treating themselves at home,” commented Simon Roberts, chief executive at Sainsbury’s. “Customers shopped early, buying Christmas treats and fizz more than once and looked for deals, taking advantage of Black Friday and other seasonal offers. Argos offered great value and quality and, as train and postal strikes disrupted the country, customers appreciated its reliability and convenience.”

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