Overview
- Sainsbury’s said total retail sales excluding fuel rose 2.7% to £9.15bn and grocery sales climbed 3.6% in the 16 weeks to June 20, driven by higher volumes.
- Growth in food was offset by a 3.7% fall in general merchandise and a 2.1% drop at Tu, while Argos sales dipped 0.5% as shoppers held back on non‑essential buys.
- The group credited value measures such as its Aldi price match and targeted Nectar discounts with winning price‑sensitive customers and lifting volumes.
- Chief executive Simon Roberts warned that inflationary pressure is still working through the supply chain and could affect prices later, even though ONS data showed food inflation at 2.2% in May.
- Shares rose about 1.9% in early trading after the update, and Sainsbury’s also flagged operational strain from recent record heat that underscores the need to invest in store infrastructure.