Christmas and Q3 grocery volume performance was ahead of the market for the third consecutive year, according to Sainsbury’s third quarter trading statement for the 16 weeks ended 7th January 2023.
The supermarket said the growth was driven by investment in value, innovation, service and product availability.
Q3 grocery sales were up 5.6% on last quarter, putting sales 12.5% ahead of pre-pandemic levels. Christmas grocery sales were also up 7.1%.
Sainsbury’s now expects its profits to be towards the upper end of its guidance range £630 million to £690 million. Retail free cash flow is expected to be around £600 million, also ahead of previous guidance of at least £500 million.
Other highlights of the report include:
- Sainsbury’s said that it had continued to inflate behind the market and had improved its value position against all key competitors. In November, the supermarket accelerated its value plan and announced a further £50 million investment in low prices by March 2023, bringing the total investment to £550 million
- Its Own Brand ranges performed strongly, as customers looked for great value as well as festive treats, with overall sales growth of 10%, and its entry price product range was the fastest growing sub-brand
- Sainsbury’s claimed that its Taste the Difference outperformed its full choice supermarket competitors’ premium ranges, with sales up 10% year on year and 27% over three year
- The supermarket also released its Groceries Online Christmas home delivery slots five weeks earlier than last year and delivered on Christmas Eve for the first time. Customer satisfaction in Groceries Online for Christmas week improved against last year.
Record sales
Simon Roberts, chief executive of J Sainsbury plc, said that the company had delivered “the best possible Christmas for customers.”
He explained: “We prioritised keeping our prices low and giving our customers great value at Christmas. We went bold on the traditional fresh turkey roast dinner with all the trimmings and dessert, which was the best value in the market at under £4 per head. Sales were also boosted by the World Cup as people celebrated more at home. Our determined focus on delivering the best value alongside new and exciting festive food plus outstanding customer service and availability meant we delivered record sales, and market outperformance at both Sainsbury’s and Argos.
“We understand money will be exceptionally tight this year particularly as many people wait for Christmas bills to land. We are working together with our suppliers to battle cost inflation and we’re keeping prices low again this year with our biggest value campaign yet in January, price matching Aldi on around 300 of our most popular products.”
Sainsbury’s will announce its preliminary results for the year ending 4th March 2023 on 27th April 2023.
