UK supermarket Sainsbury’s sees a 1.5% drop in general merchandise and clothing sales for 28 weeks ending 14 September 2024.
- Despite the decrease, Sainsbury’s autumn/winter clothing range shows improved performance over the previous year.
- Overall sales for Sainsbury’s rose by 4.6% year-on-year, with like-for-like retail sales (excluding fuel) increasing by 3.4%.
- The supermarket reported an underlying profit before tax of £356 million, marking a 4.7% rise from the previous year.
- Sainsbury’s is advancing its clothing forecasting with machine learning, following its success with food products.
Sainsbury’s, a major UK supermarket chain, experienced a 1.5% decrease in general merchandise and clothing sales over a 28-week period ending in mid-September 2024. This decline contrasts with the improved performance of its autumn and winter clothing collections, which benefited from a renewed focus on design and exceeded last year’s performance expectations.
In a broader context, Sainsbury’s overall sales surged by 4.6% compared to the previous year. Moreover, like-for-like retail sales, excluding fuel, also demonstrated a positive trend with a 3.4% rise. These figures underscore the supermarket’s robust financial health despite the setback in clothing sales.
The company recorded a total underlying profit before tax of £356 million, reflecting a 4.7% increase year-on-year. This profitability highlights Sainsbury’s ability to navigate challenges and maintain a competitive position in the retail market.
Sainsbury’s has initiated steps to enhance its clothing sales by integrating machine learning into its forecasting processes. This strategy has already been implemented successfully with its food products, leading to reduced stock holdings and waste.
Simon Roberts, Sainsbury’s Chief Executive, acknowledged the efforts of colleagues and suppliers in positioning the company for a promising festive season. He expressed optimism, stating “there is real energy and excitement at Sainsbury’s and Argos and we’re expecting another strong performance.”
Sainsbury’s remains resilient in the face of challenges through strategic innovation and a focus on operational efficiency.
