Sainsbury's reports that "investment in value, innovation and service" has delivered strong volume and market share growth across the 28 weeks ended 16th September 2023.
"We’re gaining volume from all of our grocery competitors, have grown ahead of the market throughout the first half and made record market share gains," states the retailer.
General merchandise sales were up +1.1% YoY despite "tough weather comparatives" over the summer.
Argos sales proved resilient, with sales up +3.3% (excluding the impact of closing Argos in the Republic of Ireland).
Argos continued to gain market share, and, to better serve an increasing number of online customers, Habitat launched a digital showroom, an online service showcasing the brand's product range and offering advice via video call.
Sainsbury's adds that Argos' profitability has improved in recent years thanks to a lowered fixed cost base, an improved product range and an expansion of the number of points where customers can conveniently collect products.
"Consistent investment in our customer proposition has driven strong momentum and profit growth in our grocery business and continued market share gains for Argos," states the retailer. "This strong trading momentum has continued in recent weeks, and we are confident heading into the peak trading period.
"Hence, despite headwinds in financial services and some tough comparatives ahead, we now expect to report underlying PBT in FY 2023/24 of between £670m-£700m, the upper half of our previous guidance range (£640m-£700m). We expect to generate retail free cash flow of at least £600m, higher than our previous guidance of at least £500m."
