8th Jan 2020 07:28
(Alliance News) - J Sainsbury PLC on Wednesday reported a sales fall in its third quarter, a period which includes the pivotal Christmas and Black Friday trading spells, though sales in groceries alone edged higher year-on-year.
In the 15 weeks to January 4, total retail sales, excluding fuel, were down 0.7% from last year. Including fuel, sales were down 0.9%.
On a like-for-like basis, sales excluding fuel also were 0.7% lower year-on-year, but the like-for-like decline stretched to 1.1% when including fuel sales.
Grocery sales rose 0.4% from a year ago, with online grocery sales alone up 7.3%, Sainsbury's reported that a record 385,000 customers ordered groceries online in the week before Christmas.
The drive toward online was evident in the rest of the company as well. Across the whole business, over 20% of sales in the quarter started online, with total online sales growing more than 5% year-on-year.
Elsewhere, Clothing sales rose by 4.4%, which Sainsbury's attributed to both the colder weather during the quarter and its Christmas gift range.
General Merchandise sales, however, slipped by 3.9% year-on-year, despite Argos, its Milton Keynes-based catalogue retailer, outperforming the market in consumer electronics. Argos had its biggest ever Black Friday for sales of digital products, Sainsburys said.
Toy and gaming markets declined year-on-year however, the company reported.
Chief Executive Mike Coupe said: "We gave our customers a great combination of quality food at good prices this Christmas and we delivered a standout performance operationally.
"Argos had its biggest digital Black Friday to date and record sales through mobile and via Argos Click and Collect, 32 million customers shopped with us across Sainsbury's and Argos in the key Christmas week."
During the period, the company added six new convenience stores to its estate, including a new larger-format convenience store in Woodhall Spa, Lincolnshire.
Elsewhere, the FTSE 100 firm opened new supermarkets in South Woodham Ferrers, Essex and Olney, near Milton Keynes.
Sainsbury's added: "We invested in 127 supermarkets and 93 convenience stores in the quarter and are on track to deliver improvements to 450 supermarkets and 200 convenience stores by mid-March.
"Retail markets remain highly competitive and promotional and the consumer outlook continues to be uncertain. However, we are well placed to navigate the external environment and are executing well against our strategy."
Sainsbury's shares closed 1.9% higher at 231.00 pence each in London on Tuesday.
By Eric Cunha; [email protected]
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