Sainsbury’s [IRDX RSBR] today said that a differentiated strategy was delivering sales growth, as it reported retail sales up by 2.7% in the first quarter of its financial year.
The retailer, a Leading trader in IRUK Top500 research, says that that its emphasis on quality, value and choice is helping it to lift sales both in food and non-food. Sainsbury’s grocery sales rose by 3% in the 16 weeks to July 1, while transactions were up by 1.9%. Online grocery sales grew by 8%.
The retailer, which bought Argos [IRDX RARG] last year, also saw general merchandise sales grow, while shoppers moved towards taking delivery of their products as quickly as possible. Argos has innovated through its launch of Fast Track delivery and collection services, enabling timed and same-day order fulfilment.
Chief executive Mike Coupe said: “We have delivered a strong performance, driven by our differentiated strategy, offering customers quality, value and choice across food, general merchandise, clothing and financial services.”
He added: “Groceries online sales grew by eight per cent and convenience delivered strong growth of ten per cent, in line with our strategy of being there for customers whenever and wherever they want to shop.
“General merchandise and clothing, including Argos, outperformed the market, with Fast Track delivery and collection seeing a stellar performance during the quarter, particularly during the period of warm weather when customers wanted to buy and receive their products the same day. Argos customers are increasingly choosing to shop with us online, consistent with our objective of being a leading digital retailer.
“The market is competitive and we continue to manage cost price pressures closely. Our strategy is delivering and we are well placed to navigate the external environment.”
Mentioned in this piece…
- Sainsbury's Argos, Home Retail Group