Sainsbury’s sales growth slows as shoppers shop 'more cautiously' due to bad weather

Sainsbury's has blamed bad weather on a more cautious trading outlook after an update to the City today. Sainsbury's confirmed sales at the catalogue retailer fell 6.2% in the 16 weeks to June 22 due to weaker demand for consumer electronics and gaming products.

Sainsbury’s reported a 3% rise in like-for-like sales, excluding fuel, while grocery sales were up 4.8% - however, although this growth was slower compared to recent years as food inflation has fallen. Sainsbury’s also revealed that total general merchandise sales fell 4.3% due largely to a blow from unseasonal early summer weather.

The group said it was sticking to its guidance for underlying retail operating profits of between £1.01billion and £1.06billion for the full year, which would be growth of 5% to 10%. Simon Roberts, chief executive of Sainsbury’s, said: “We are pleased with our market-beating grocery performance. We’ve been winning from competitors every month for 15 months, as more and more people are choosing Sainsbury’s for their big weekly shop.

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"We are laser focused on delivering the best combination of value and quality in the market and our customers are recognising that with 98% of big baskets including Nectar Prices or Aldi Price Match.” Electronics sales were weaker amid softer demand, particularly games, in what it called “a tough trading backdrop”.

“Consumers continue to shop general merchandise more cautiously,” it said, adding that shoppers were responding where it had offered discounts. Mr Roberts, the chief executive of Sainsbury’s, said consumers’ caution was “not surprising given everything households have been through in the cost of living crisis."

Mr Roberts said: "Until we see sequential interest rate cuts, hopefully as soon as possible, that caution from consumers is going to continue on those more discretionary items.” And Mr Roberts said the group continued to win market share every month as more people chose its supermarkets for their big weekly shop. “Our food business is going from strength to strength,” he added.