Sainsbury's has reported record sales of festive favourites such as pigs in blankets, mince pies and sparkling wine over the Christmas period. The UK's second largest supermarket chain saw grocery sales rise by 8.6% in the six weeks to 6 January, helping to offset a sharp decline in sales at its Argos and clothing divisions.
The supermarket attributed its strong performance to its Nectar loyalty card scheme, with many customers using the cards to save an average of £16 on an £80 Christmas shop. Sainsbury's also highlighted strong sales of its premium 'Taste the Difference' range, as well as record volumes of premium cheese sold during Christmas week.
Chief executive Simon Roberts credited the use of artificial intelligence for keeping shelves stocked, alongside strong supplier relationships and customer service. The food sales boost helped counter a 4% drop in Argos sales, which Sainsbury's said was compared to an 'exceptional' previous year when the retailer benefited from a postal strike and demand for energy-saving products.
Overall, like-for-like sales grew 7.4% in the 16 weeks to 6 January, with total sales up 6.5% excluding fuel. This growth outpaced annual inflation, which fell to 3.9% in November. Analyst Sophie Lund-Yates of Hargreaves Lansdown noted that the supermarket's efforts to improve pricing and product offerings had resonated with consumers, with sales momentum driven by volume rather than just price increases.
