Sainsbury’s sales fall as customers cut back spending

UK supermarket chain J Sainsbury said that sales dropped over the last quarter as the squeeze on household incomes intensified.

The group said on Tuesday that same-store sales, excluding fuel, were down 4 per cent in the 16 weeks to June 25 compared with the same period a year ago.

Grocery sales fell 2.4 per cent in the period, partly reflecting strong comparative figures from last year when the hospitality industry was largely closed due to lockdowns.

Sainsbury said in its trading update that the decline in sales was in line with its expectations and the rate of decline had eased as the quarter progressed. The supermarket group left its full-year forecasts unchanged.

Sales at Argos, which the supermarket group acquired in 2016, were down 10.5 per cent year on year in the 16 weeks to June 25. That followed a 20 per cent decline in the final quarter of the previous financial year.

As was the case with smaller rival Wm Morrison, the surge of higher petrol and diesel prices helped sales. Including fuel, sales were up 2.9 per cent in the period.

The group said that Kevin Byrne, finance director, would retire from the company in March 2023 and be replaced by Bláthnaid Bergin, currently commercial and retail finance director.