UK supermarket Sainsbury’s reported a 4.3% decrease in clothing and general merchandise sales for a recent quarter.
- Overall sales for Sainsbury’s increased by 4.2% year-on-year, driven by strong grocery performance.
- The decrease in clothing sales was attributed to unseasonal weather conditions affecting consumer purchasing decisions.
- A renewed focus on core clothing ranges showed initial positive momentum before the weather impact.
- Sainsbury’s also initiated a £200 million share buyback programme, set to be completed in 2024-2025.
Sainsbury’s reported a 4.3% decline in clothing and general merchandise sales during a recent quarter. Despite the overall year-on-year sales growth of 4.2% for the 16 weeks leading up to 22 June, clothing sales were adversely affected by unseasonal weather conditions.
The supermarket had noted an initial positive improvement in clothing sales momentum, owing to a strategic emphasis on core ranges. However, these gains were not sustained due to weather impacts, which altered typical consumer purchasing patterns.
CEO Simon Roberts expressed satisfaction with Sainsbury’s market-leading grocery performance, stating, “We’ve been winning from competitors every month for 15 months, as more and more people are choosing Sainsbury’s for their big weekly shop.” Acknowledging the challenges faced in the clothing sector, Roberts highlighted the efforts to match the seasonal sports calendar with summer clothing ranges.
In parallel to addressing the challenges in the clothing department, Sainsbury’s commenced a £200 million share buyback as part of its financial strategy, with completion anticipated in the 2024-2025 fiscal period.
Sainsbury’s continues to perform well in groceries, despite setbacks in clothing sales due to external factors.
