Sainsbury's buoyed by M&S cyber disruption and sunny weather

South Wales Argus

01-07-2025

The UK's second largest supermarket said the hack at M&S, which left some of its shelves empty at the height of the crisis, helped drive customers into Sainsbury's stores.
Chief executive Simon Roberts said: 'If a particular store is lower on stock, in the moment, a customer will go somewhere nearby.'
'Everybody has benefited a little bit as a result (of the attack),' he added.
Marks & Spencer suffered some stock issues at the height of the cyber woes (Holly Williams/PA)
The group saw customers turn to Sainsbury's for lunchtime food and sandwiches in the early days of the M&S disruption, which forced the group to suspend all online orders and impacted some stock availability.
M&S has since resolved the stock issues and has reopened its website for orders with aims for its online operations to be fully restored within four weeks.
Sainsbury's said sunny weather also helped total sales jump in its first quarter, up 4.9% in the 16 weeks to June 21.
The group said it had achieved its highest market share since 2016, having grown share for three years in a row.
Its latest update showed grocery sales lifted by 5% in the quarter, with growth of 4.2% for general merchandise and clothing, while the Argos business saw sales rebound by 4.4%.
On a like-for-like basis, excluding fuel and VAT, group sales rose by 4.7% in the best performance for at least a year.
Warm weather boosted demand for Taste the Difference fresh food, which saw sales surge 20% as customers snapped up picnic and deli ranges.
Tu Clothing sales jumped 8%, driven by a 13% 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% from 1.9% in the previous three months – the second quarter in a row of rising sales.
It said Argos trading was helped by 'warm and dry weather against a weak comparative'.
The group said it was making progress on efforts to revamp the Argos division, focusing on driving more shopping visits and higher basket sizes.
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% higher in June, up from 2.8% in May.
Simon Roberts, chief executive of Sainsbury's, said: '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.'
Sainsbury's confirmed it was on track with guidance for the full-year, which is set to see underlying operating profits remain flat at about £1 billion 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,' according to the group.