Sainsbury's: sales drop on lower general merchandise demand
(CercleFinance.com) - Sainsbury's sales fell over the third quarter, with demand for clothes and grocery failing to offset a fall in general merchandise sales, mainly through the household goods unit Argos.
The British retailer said that total retail sales, excluding fuel, declined by 0.7% in the 15 weeks to 4 January, with like-for-like sales also down 0.7%.
While grocery sales grew by 0.4% and clothing sales rose by 4.4%, general merchandise sales - which notably includes electricals - declined by 3.9%, the group said.
"Argos outperformed the market in consumer electronics, but the toy and gaming markets declined year on year," Sainsbury pointed out.
However, Chief Executive Mike Coupe said that the company delivered a "standout performance operationally" over the Christmas quarter.
And while retail markets remain "highly competitive" and "promotional" as the consumer outlook remains uncertain, Sainsbury is well placed to navigate the environment and is executing well against its strategy, he noted.
Sainsbury's trading statement received a rather lukewarm response from investors on the London Stock Exchange, with the shares down 0.2% at 230.5 pence in early morning trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The British retailer said that total retail sales, excluding fuel, declined by 0.7% in the 15 weeks to 4 January, with like-for-like sales also down 0.7%.
While grocery sales grew by 0.4% and clothing sales rose by 4.4%, general merchandise sales - which notably includes electricals - declined by 3.9%, the group said.
"Argos outperformed the market in consumer electronics, but the toy and gaming markets declined year on year," Sainsbury pointed out.
However, Chief Executive Mike Coupe said that the company delivered a "standout performance operationally" over the Christmas quarter.
And while retail markets remain "highly competitive" and "promotional" as the consumer outlook remains uncertain, Sainsbury is well placed to navigate the environment and is executing well against its strategy, he noted.
Sainsbury's trading statement received a rather lukewarm response from investors on the London Stock Exchange, with the shares down 0.2% at 230.5 pence in early morning trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.