Sainsbury’s: Supermarket giant achieves highest market share for almost a decade

Grocery sales lifted by 5 per cent in the group’s first quarter, with growth of 4.2 per cent for general merchandise and clothing, while the Argos business saw sales rebound by 4.4 per cent.

On a like-for-like basis, excluding fuel and VAT, group sales rose by 4.7 per cent in the best performance for at least a year.

The group said it had achieved its highest market share since 2016, saying it had grown share for three years in a row.

But the figures come amid further signs of mounting food price inflation, with the latest BRC (British Retail Consortium)-NIQ Shop Price Index figures on Tuesday showing food prices were 3.7 per cent higher in June, up from 2.8 per cent in May.

Simon Roberts, chief executive of Sainsbury’s, said the “winning combination of great value, outstanding quality, excellent availability and leading customer service has driven further share gains”.

He added: “We know how important it is that we provide consistently great value and we have built further on our strong competitive position, improving our prices against all key competitors year-on-year.

“We’re now offering even more opportunities for customers to save on the items they buy most often through the biggest Aldi Price Match commitment in the market, covering around 800 everyday essentials.”

The group said strong first quarter performers included Taste the Difference fresh food, which saw sales surge 20 per cent as customers snapped up picnic and deli ranges in the sunny spring and early summer weather.

Tu Clothing sales jumped 8 per cent, driven by a 13 per cent leap for womenswear, which the group put down to better design and strong availability.

Its Argos business also enjoyed a sales bounce back, with growth increasing to 4.4 per cent from 1.9 per cent in the previous three months – the second quarter in a row of rising sales.

It said trading was helped by “warm and dry weather against a weak comparative”.

The group said it was making progress on revamp efforts at the Argos division, focusing on driving more shopping visits and higher basket sizes.

Sainsbury’s confirmed it was on track with guidance for the full-year, which is set to see underlying operating profits remain flat at around £1bn as stronger sales volumes are expected to be offset by weaker profitability amid investment in price cuts.

“Profit delivery will be supported by continued growth in Nectar profit contribution and industry-leading cost saving delivery and will be weighted more towards the second half versus last year,” the group said in a statement.

The statement added: “Our popular Nectar Prices are now available on over 9,000 products, driving consistently high Nectar participation as more and more customers use Nectar when they shop with us.

"We’re leading the way in personalisation, with more than one million customers already accessing personalised savings each week through Your Nectar Prices, currently available on SmartShop and Online.

It continued: “We are going further to scale this offer, making it even easier for customers to access the offers tailored to them and are working to generate up to 500 million personalised offers each week.”