For a fifth consecutive year, Sainsbury's won greater market share for groceries over Christmas, but Argos' sales were down -1.4% over the group's Q3 (ended 4th January), reveals its latest trading statement.
"Continued improvements to our digital proposition, delivery offers, product and promotions delivered positive traffic trends and sales growth in the key Black Friday and Christmas weeks," states Sainbury's. "However, this was more than offset by the impact on sales and gross margins of subdued customer spending outside these key periods and a highly promotional environment.
"Customer satisfaction scores have improved in key areas such as appealing promotions, variety of items, product availability and ease of using our website, reflecting actions we have taken to extend the breadth of our range, enhance our digital experience and highlight great value. One in four people in the UK visited the Argos website over Black Friday weekend, a significant increase YoY."
Over the quarter, sales were strongest in technology, while the toy market was weak, and customer demand in bigger-ticket categories including furniture and larger consumer electronics remained subdued.
Looking to further offset offsetting operating cost inflation in 2025, the retailer adds: "We believe that happy, well-engaged colleagues deliver great customer service, and so have announced our decision to increase pay for retail colleagues by +5% this year, split into two increases in March and August."
