Sainsbury’s keeps profit guidance as loyalty card Christmas boosts sales
Sainsbury’s thanked cash-strapped shoppers using its loyalty card scheme for a bumper Christmas, as the supermarket giant maintained its guidance for the year.
In an update on its performance over the festive period, the grocer said third quarter food sales grew 9.3 per cent while Christmas grocery sales jumped up 8.6 per cent.
The firm said usage of its Nectar Card reached 90 per cent on an £80 weekly shop during the quarter, as shoppers used the scheme to get their Christmas roast on a discount.
Chief Simon Roberts said: “This was our first Christmas powered by Nectar Prices, helping customers save an average of £16 on an £80 Christmas shop.
“We delivered our best ever value Christmas roast and customers bought record numbers of pigs in blankets, mince pies and sparkling wine. Taste the Difference sales grew ahead of the market as families treated themselves.”
Aside from groceries, Sainsbury’s said general merchandise sales were down six per cent in the third quarter and sunk 3.7 per cent over Christmas.
Despite this, the board maintained its guidance for the year with underlying profit tax before expected to reach between £670m and £700m.
Sainsbury’s share price took a four per cent knock this morning as investors gave a frown to the mixed performance.
Roberts added: “We enter 2024 with strong momentum and next month we will share our updated strategy, building on all we’ve done to put food back at the heart of Sainsbury’s over the last three years.
“There is a lot to be excited about and we remain absolutely committed to deliver for our customers, colleagues and shareholders.”