Latest news with #grocerysales
Yahoo
16-07-2025
- Business
- Yahoo
Grocery e-commerce sales jump nearly 30% in June
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Online grocery sales jumped nearly 28% in June compared to the year prior, while in-store sales slipped, according to Brick Meets Click and Mercatus' latest monthly report. All three receiving methods — delivery, pickup and ship-to-home — reported sales gains of at least 25%. Walmart and mass retailers as a whole continue to threaten traditional grocers, with Mercatus executive Mark Fairhurst stating that June's results 'should be a wake-up call' to regional grocers. While U.S. e-grocery sales increased 27.6% last month to $9.8 billion, in-store grocery sales fell slightly due to the combined impact of the surge of digital orders and consumers shifting where they primarily purchase groceries, according to the report. Overall grocery spending per household rose less than 3% during the final week of June 2025 compared to the same period the year prior, indicating that in-store grocery sales across retail formats saw a decline, according to Brick Meets Click and Mercatus. However, supermarkets were hit hard by a shift in where consumers buy most of their groceries. While Walmart saw a nearly 1 percentage point rise in the share of households that indicated the mass retailer was their primary grocery store, and hard discounters like Aldi gained almost 1.5 percentage points, supermarkets lost over 2 percentage points, per the report. The growing competition from mass and discount retailers carries over to e-grocery results, as well, Brick Meets Click and Mercatus found. One in four households that ordered groceries online from supermarkets also did so from Walmart in June, up 400 basis points year-over-year. On top of that, cross-shopping between traditional grocery stores and Walmart has risen every June since 2020 — which is when Brick Meets Click began measuring and monitoring this shopping indicator, the firm said. Overall, delivery saw a 29% year-over-year growth in June sales, reaching $3.8 million, which Brick Meets Click and Mercatus credited to strong growth in the segment's monthly active user base as well as gains in order frequency and average order value. 'June's strong results signal that this sustained surge in eGrocery sales, particularly in Delivery, is likely to continue because Delivery is now effectively free for many users,' Brick Meets Click Partner David Bishop said in a statement. Pickup also saw growth, with sales increasing 25% year-over-year to $4.3 billion, driven by increases to its monthly active user base, order frequency and average order value. Ship-to-home, meanwhile, saw sales increase 33% to $1.7 billion with its monthly active user base expanding faster than the delivery segment's, per the report. Delivery and ship-to-home both increased their sales share, with the former currently representing 38% of e-grocery sales and the latter 18%. Pickup, however, saw its share decline for the second straight year, dropping 110 basis points to 44%. The report is based on a Brick Meets Click survey of 1,496 adults conducted June 29-30, as well as a survey by the firm in June 2024 of 1,744 people. According to Brick Meets Click, despite the grocery channel reporting year-over-year improvements in building engagement through delivery and pickup, mass retailers still have a more than 10-point advantage in delivery, with Walmart continuing to attract new online customers who primarily buy groceries from supermarkets. Fairhurst, chief growth marketing officer at Mercatus, suggested that regional grocers leverage their customer data as a competitive advantage. The sharp rise of cross-shopping between traditional supermarkets and Walmart underscores 'the urgent need to defend your customer base on every channel by owning the relationship at each touchpoint,' Fairhurst said. Recommended Reading How grocers can level the playing field against Walmart in e-commerce Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
Sainsbury's like-for-like sales grew 4.7% in Q1 FY25/26
British supermarket chain Sainsbury's has reported a 4.7% increase in like-for-like sales, excluding fuel, for the first quarter (Q1) of the fiscal year 2025/26 (FY25/26). Grocery sales rose 5%, total retail (excluding fuel) by 4.9% and general merchandise and clothing 4.2%. Argos saw a 4.4% increase in sales, ahead of a subdued and intensely competitive general merchandise market facing deflationary pressures, aided by favourable warm and dry weather conditions. Sainsbury's has delivered wjat it describes as the 'highest market share since 2016,' gaining share for the third consecutive year. J Sainsbury chief executive Simon Roberts stated: '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. As a result, our value for money customer satisfaction scores are the highest they have ever been.' The company continues to expect to deliver a retail underlying operating profit of £1bn ($1.3bn) and retail free cash flow of more than £500m in FY25/26. The profit delivery will be supported by growth in Nectar profit contribution and cost-saving delivery, with a greater weight towards the second half of the year compared to the previous year. Sainsbury's stated: "Our value proposition is stronger than ever and we've improved our price position against all key competitors year-on-year. Value for money customer satisfaction scores are the highest they have ever been". Sainsbury's has also seen an 18% increase in sales of its Taste the Difference range and launched 450 new products in the first quarter, with more than 250 of these in Taste the Difference. Roberts added: 'We have great momentum, growing faster than the market for three consecutive years and we are well set to deliver another strong performance over the summer. Boosted by a sunny spring, we're already off to a great start with Taste the Difference fresh food sales up 20% as customers enjoy our delicious new deli and picnic ranges, which are perfect for sharing with friends and family.' Convenience sales grew 6%, with high customer satisfaction scores reflecting a positive response to the Aldi Price Match commitment. Groceries Online sales also increased by 6%, with growth in both orders and basket size. The company said it is progressing with its 'More for More' plan, opening seven new convenience stores and two new supermarkets, both performing ahead of expectations. Tu Clothing sales grew by 8%, with womenswear up by 13%. Sainsbury's is investing in reducing fulfilment costs, tighter stock management, and optimising the store operating model to support its customer proposition. Sainsbury's added: 'We are confident in delivering £1bn of cost savings by March 2027, investing in high-returning activity across the customer proposition, productivity, operations and technology stability and resilience.' Sainsbury's has reported a significant rise in its after-tax profit to £242m ($320m) for the fiscal year 2024/25 (FY24/25) – a 76.6% increase from the previous year's £137m. "Sainsbury's like-for-like sales grew 4.7% in Q1 FY25/26" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Sun
01-07-2025
- Business
- The Sun
Sainsbury's sees sales boost thank to Marks & Spencer cyber attack
SAINSBURY'S has seen a boost in sales, partly thanks to the cyber attack that disrupted rival Marks & Spencer earlier this year. The supermarket reported a 4.7 per cent rise in group sales for the 16 weeks to June 21, excluding fuel. 1 Grocery sales jumped by 5 per cent, while Argos saw a 4.4 per cent increase as shoppers bought fans and paddling pools during the warm weather. Sainsbury's said it had achieved its highest market share since 2016, growing share three years in a row. Boss Simon Roberts admitted that the M&S disruption had helped, saying: 'If a store is low on stock, customers will go somewhere nearby. 'We've had a little bit of benefit.' At yesterday's annual general meeting, M&S boss Stuart Machin said he expects online services to be fully restored within four weeks. Sainsbury's 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 weather. Tu Clothing sales jumped 8 per cent, driven by a 13 per cent womenswear leap. Sainsbury's also confirmed it is on track to meet its £1billion profit target for the year, despite the impact of price cuts. Meanwhile, food price inflation rose 3.7 per cent in June, up from 2.8 per cent in May. RATE CUT HINT MILLIONS of borrowers could see their costs drop as interest rate cuts look more likely next month. Bank of England governor Andrew Bailey said the labour market is 'softening', with pay rises slowing down. Markets now predict a 75 per cent chance of rates being cut from 4.25 per cent to four per cent. Mr Bailey said: 'The path of interest rates will be gradually downwards.' PLUGS A HOLE SOUTHERN WATER's owner has pumped £1.2billion into the struggling utility to shore up its finances. Australian firm Macquaire, which used to own Thames Water, has already handed over £655million, with another £545million expected by December. Southern Water, which serves 4.7 million people in the South and South East, has built up nearly £9billion in debt. SQUEEZE ON CASH ISAS SAVERS are set to be dealt a blow as the Chancellor plans to slash the cash ISA allowance. Right now, you can save up to £20,000-a-year tax-free across four ISAs: cash, stocks and shares, lifetime, and innovative finance. The £20,000 limit will stay, but the amount allowed in cash ISAs is set to be reduced, according to The Financial Times. It is intended to encourage more money into stocks and shares ISAs, which potentially offer better returns and more support to the economy. Unlock even more award-winning articles as The Sun launches brand new membership programme - Sun Club.
The Independent
01-07-2025
- Business
- The Independent
Sainsbury's buoyed by M&S cyber disruption and sunny weather
Sainsbury's has hailed its highest market share for nearly a decade as sales were given a boost by warm weather and a temporary boost from the cyber attack disruption at rival Marks & Spencer. 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. 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.
Times
01-07-2025
- Business
- Times
Sainsbury's gets boost from sunny weather
Sainsbury's has reiterated its profit guidance after warm summer weather drove strong sales in its premium food ranges, helping the UK's second-largest grocer secure its highest market share in nine years. The FTSE 100 supermarket chain said customers had chosen to entertain at home rather than dine out over the last three months, resulting in an 18 per cent surge in sales of its Taste the Difference premium food range. Deli and picnic items such as ham croquettes, aioli, pecorino, and burrata proved especially popular as shoppers opted for informal gatherings with friends and family. First quarter retail sales excluding fuel rose by 4.9 per cent for the 16 weeks to June 21. On a like-for-like basis, they were up 4.7 per cent compared with a year earlier, and up 4 per cent in the previous quarter. Analysts at Barclays had expected growth of 4.2 per cent on a like-for-like basis. • Business live: UK house prices fall as stamp duty rise hits demand The increase was largely driven by a 5 per cent rise in grocery sales, accelerating from 4.1 per cent in the three months prior. Sainsbury's said the strong grocery performance reflected the success of its 'food first' strategy, which includes expanding food ranges in redesigned stores, offering 'the biggest Aldi price match in the market', and driving loyalty through its Nectar rewards programme. The results helped the supermarket group deliver its highest market share since 2016. Despite the upbeat grocery performance, general merchandise sales showed signs of softening. The division, which includes its Habitat and Tu clothing ranges, posted 4.2 per cent year-on-year growth, down from 6.4 per cent in the previous quarter. Sainsbury's, which acknowledged 'deflationary' discretionary spending, has intentionally reduced the amount of general merchandise on offer in stores as it focuses on its better-performing food ranges. Tu clothing sales rose 8 per cent, which it claimed was ahead of the wider market and supported by stronger availability and improved design. The supermarket has been praised in recent months for its fashionable pyjamas and summer wear. Argos delivered sales growth of 4 per cent, up from 1.9 per cent in the previous quarter. The retailer said it benefited from warmer, drier weather and an easier comparative, along with better product availability across key lines. The group's performance comes amid a challenging economic backdrop, with consumers remaining cautious and spending selectively. Businesses also have been hit by wage hikes and increased national insurance costs, brought on by Rachel Reeves' October budget. Sainsbury's said it still expected to deliver underlying retail operating profit of about £1 billion for the full year and more than £500 million in retail free cash flow. It also reaffirmed its target of £1 billion in cost savings by March 2027, to be achieved through better productivity, more efficient operations and improvements to technology infrastructure. No further job cuts were announced. Simon Roberts, the chief executive of Sainsbury's, will likely be asked today why the grocer kept profit guidance unchanged. Tesco, which beat sales expectations in the first quarter, said earlier this month that was too soon to raise profit guidance as competition in the sector remained 'intensely' competitive. Sales at the UK's largest supermarket chain were lifted by strong demand for salads and summer clothing.
