Sainsbury's saw group sales rise by +4.4% yet retail operating profit fall by -9% in H1 (to 17th September 2022), with sales of general merchandise sales down -6.1% but up +1.2% in Q2, driven by improved availability, favourable summer weather and strong market share gains.
The group says Argos is considerably more profitable than it was before the pandemic – sales grew +1.6% in Q2, and the brand's transformation programme remains on track, says the retailer.
Habitat saw "strong" sales growth, espcially in the in Habitat Kids line, in which bedroom furniture and bedding were the star performers.
Simon Roberts, chief executive of J Sainsbury, says: "We have grown market share in both grocery and general merchandise, and investment in our stores and colleagues is supporting leading supermarket customer satisfaction and availability. Profits are significantly higher than pre-Covid levels and we are generating strong cash flow, supporting debt reduction and dividend payments.
“We will have invested more than £500m by March 2023 in keeping prices lower by cutting our costs at a faster rate than our competitors, meaning we have more firepower to battle inflation. Over the past year and a half we have consistently passed on less price inflation than our competitors, and I am confident we have never been better value. Argos is also performing well in a market where customers are looking for reassurance that they are getting great value and availability."
Sainsbury's says trading momentum has remained strong in the first few weeks of H2, and that it has continued to make volume market share gains.
