A very strong Christmas trading period helped J Sainsbury (LON:SBRY) beat sales forecasts in its latest quarter, though shares dipped as the supermarket giant warned trading conditions remain tough.
Customers bought more than 100,000 turkeys in the run-up to the holiday break, with the group’s taste the difference range notching up 10% growth over the three months to December and seeing an especially strong Christmas period.
Total sales during the period to January 4 rose by 2.5% helped by over 555,000 square feet of new space, that included six supermarkets, four extensions, and 19 convenience stores. Like-for like sales rose by 0.2%, but were dead flat excluding fuel.
The figures were better than analysts had forecast and showed some resilience in the face of intense pressure from discount stores such as Aldi and Lidl at the bottom end of the market and from Waitrose and Marks & Spencer in the more expensive lines.
Justin King, Sainsbury’s chief executive, said: “The seven days prior to Christmas was our busiest ever trading week, with more than 28 million transactions.
“Monday 23 December was the busiest day and saw our biggest trading hour, with customers spending nearly £17 mln.”
“As with last year, we expect customers to spend cautiously in the few months following Christmas, in an attempt to rebalance the household finances. The general economicbackdrop remains uncertain for many families, so helping them to Live Well for Less remains the key to continuing our market outperformance."
Shares eased 7p to 362p.