Sainsbury's Sees Festive Boost in Grocery Sales but Decline in Other Areas

Despite a 8.6% rise in grocery sales, the supermarket giant reports a drop in general merchandise, clothing, and Argos sales.

Sainsbury's, the UK's second-largest supermarket, reported an 8.6% rise in grocery sales over the festive period, with record sales of sparkling wine, mince pies, and pigs in blankets.
Despite the boost in grocery sales, Sainsbury's saw a decline in other areas, with a 0.9% slip in general merchandise sales, a 6% fall in clothing, and a 4.2% drop in sales at Argos outlets.
Sainsbury's has been battling with discounters Aldi and Lidl in recent years, leading to the introduction of the Nectar Prices offer, providing steep discounts for shoppers signed up to its loyalty scheme.
CEO Simon Roberts is hopeful of regaining market share as prices ease and plans to share an updated strategy next month.
Despite the mixed results, Sainsbury's maintained its profit guidance for the financial year, expecting to report an underlying profit before tax of between £670m and £700m.