Sainsbury’s expects challenging run-up to Christmas as households feel squeeze
Summary
Sainsbury’s expects a difficult period before Christmas as households are feeling financial pressure and costs for food producers are rising. The company reported slower sales growth and widened losses but expects higher overall profit this year, while calling on the UK government to avoid raising business costs further.Key Facts
- Sainsbury’s CEO Simon Roberts warned of a challenging market before Christmas due to high costs and tough conditions for households.
- Food inflation is lower than predicted earlier but may rise next year because of high energy and fertiliser costs.
- Roberts urged the government not to increase business rates or national insurance contributions in the upcoming budget.
- Sainsbury’s half-year sales growth slowed to 2.6%, with grocery growth dropping in the second quarter.
- Online grocery sales grew by 9%, and sales of premium own-brand products rose by 6%.
- Total pre-tax losses widened to £63 million from £14 million the previous year, but underlying profit rose by 5.2% to £366 million, excluding Argos.
- Sainsbury’s plans to sell Argos, expecting the deal to complete by February and full separation by 2029.
- The company plans to open 10 supermarkets and 25 convenience stores by March and did not comment on possible mergers.
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