Rabu, 01 Juli 2020

Sainsbury's: Bumper grocery sales help offset £500m hit to profits - Sky News

Sainsbury's has revealed a better-than-forecast leap in coronavirus lockdown grocery sales - reporting it will help offset a £500m hit to profits from pandemic-related costs.

The UK's second-largest supermarket retailer said online sales more than doubled during the 16 weeks to 27 June - covering its first financial quarter.

Total retail sales rose by 8.5% and comparable like-for-like sales by 8.2% when fuel sales were excluded, the company said.

 Empty shelves in Sainsbury's in Cheshire
Image: Sainsbury's, like rivals, saw a rush for household essentials as the lockdown neared in March

It reported growth in all categories except clothing, which plunged by more than a quarter.

The chain, which includes Argos in its stable of businesses, said it did not expect the sales surge to be maintained as COVID-19 lockdown restrictions are eased.

The profit hit from the crisis was expected to be more than £500m, as previously guided, but it would be "broadly offset by business rates relief and stronger grocery sales", Sainsbury's said.

The supermarket sector has been at the forefront of efforts to keep the UK fed since the lockdown in March forced the closure of all non-essential retail and restaurants.

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Costs for Sainsbury's have included the hiring of 25,000 extra staff - temporarily - to aid safe provision of groceries in store and an expansion of delivery operations.

Digital sales grew to 650,000 orders per week, Sainsbury's said.

It claimed to have taken business away from "big four" rivals Tesco, Morrisons and Asda - along with discounters.

Simon Roberts, who succeeded Mike Coupe as chief executive last month, said: "The last four months have been extraordinary in so many ways and our colleagues have done an amazing job adapting our business.

Simon Roberts became chief executive of Sainsbury's on 1 June
Image: Simon Roberts became chief executive of Sainsbury's on 1 June

"They have worked tirelessly to keep everyone safe, to help feed the nation and to support our communities and the most vulnerable in society.

"The coming weeks and months will continue to be challenging for our customers and our colleagues and we do not expect the current strong sales growth to continue.

"A number of the decisions we have made have materially increased costs but meant that we have done the right thing for our customers and set us up well for the future."

Sainsbury's shares, down 9% in the year to date, were 2% up in early deals.

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https://news.google.com/__i/rss/rd/articles/CBMiYGh0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L3NhaW5zYnVyeXMtYnVtcGVyLWdyb2Nlcnktc2FsZXMtb2Zmc2V0LTUwMG0tdmlydXMtcHJvZml0LWhpdC0xMjAxODU4MNIBZGh0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L2FtcC9zYWluc2J1cnlzLWJ1bXBlci1ncm9jZXJ5LXNhbGVzLW9mZnNldC01MDBtLXZpcnVzLXByb2ZpdC1oaXQtMTIwMTg1ODA?oc=5

2020-07-01 07:29:04Z
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