IRUK 500

Sainsbury’s Argos reports growing online sales thanks to ‘differentiated’ strategy

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

Sainsbury’s

IRDX: RSBR

Sainsbury’s is a British supermarket chain with a significant share of the UK market. (more…)

Argos

Argos

IRDX: RARG

Argos is a large multichannel home and general merchandise retailer. It is a pioneer in multichannel retail, having successfully pivoted its legacy operations into the eCommerce age. (more…)

Image credits:
  • Sainsbury's Argos, Home Retail Group

One thought on “Sainsbury’s Argos reports growing online sales thanks to ‘differentiated’ strategy

  1. Eric MBA said:

    With Sainsbury now having a range of digital identities, principally Argos and Sainsbury, but also for furniture and added items, I feel it would be easier to have a single digital identity to compete particularly with Amazon. The vast majority of customers of Ocado know they supply Waitrose foods, so supplying Sainsbury foods under the Argos network should be a marketing rather than a logistical problem, whilst Tu etc would be more and more associated with the global integrated and technically superior Argos brand. This would also build Argos credibility as a single source integrated supplier. Far too many Brits are still thinking Amazon as their first port of call when it should be Argos.

Comments are closed.