Sainsbury’s, the renowned supermarket in the UK, is set to witness robust growth in profits over the coming year as its performance for the fiscal year 2023/24 exceeded expectations. The company reported a slight increase of 1.6% in its pre-tax profits for the 2023/24 fiscal year, reaching £701 million, surpassing the previous year’s figures. This achievement is attributed to the record-breaking growth in market share for groceries and accelerated sales growth every quarter.
The second-largest supermarket in the UK anticipates that the underlying operating profit for its retail business will reach £1.06 billion in 2024-25, higher than the £966 million reported last year. Sainsbury’s reported a 6.8% increase in retail sales, excluding fuel, benefiting from a 9.4% growth in its grocery business.
CEO Simon Roberts stated, “We’ve said we would rebuild the food category as the core of Sainsbury’s stores, and that’s exactly what we’ve done.” However, the general merchandise business, including Argos, faced tougher times with a 0.5% decline in sales, and a 6.4% decrease in clothing sales.
Sainsbury’s holds a 15.3% share in the UK grocery market, second only to Tesco, with its prices matching those of Aldi and offering even more favorable prices to members through its Nectar loyalty program, slightly boosting its robust performance.
Roberts emphasized, “Our value perception is the strongest it has been in six years, being the only full-range supermarket to gain additional sales from limited-range competitors like Aldi and Lidl.” He further added, “We have the best combination of value and quality in the market, winning customers from all major competitors, driving continuous market share growth as more and more customers choose us for everyday and special occasion shopping.”
Roberts highlighted their relentless investment in pricing, with over £780 million invested in the past three years. He acknowledged the challenging economic situation for many families and assured efforts to save costs across the business to maintain low prices. “We are fully committed to our food business,” he concluded.
