Sainsbury’s Reports Strong Christmas Sales and Announces 5% Staff Pay Increase

The UK’s second-largest supermarket credits premium product sales and market share gains for its festive success, while addressing cost pressures with a phased wage hike for 118,000 employees.

• Sainsbury’s grocery sales rose 3.8% during the six weeks to January 4, driven by strong demand for its premium Taste the Difference range, which saw a 16% increase in sales.
• The company announced a 5% pay increase for 118,000 hourly-paid workers, with wages rising to £12.45 per hour in March and £12.60 in August, matching the Real Living Wage outside London.
• Sainsbury’s captured grocery market share for the fifth consecutive Christmas, outperforming smaller rivals and achieving sustained volume growth over two years.
• Despite strong grocery performance, non-food sales at its Argos chain lagged, with a 1.4% decline over the last three months of 2024 due to subdued spending on electronics and toys.
• The company reaffirmed its profit guidance for the financial year, projecting over £1 billion in retail operating profit, while warning of continuing cost pressures from tax and inflation.

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