Sainsbury’s in ‘strong financial position’ after more than doubling online sales

Supermarket giant Sainsbury’s has announced a higher than expected sales performance despite the disruption caused by COVID-19.

The firm has reported a 10.5 per cent increase in grocery sales, as well as more than doubling its online revenue, since the coronavirus crisis began.

In addition, the company’s clothing and fuel sales have started to recover “more quickly than expected” and its financial services business has an improved capital position compared with the year end.

Simon Roberts, chief executive officer, commented: “Our business has changed fundamentally from four months ago.

“We have more than doubled our weekly sales of online groceries in recent weeks, SmartShop now accounts for more than half of sales in some supermarkets and Argos sales were strong while operating as an online-only business for almost twelve weeks.

“Our price position versus our competitors has improved in the quarter, Sainsbury’s key customer feedback scores are at record levels and we have gained market share.

“The coming weeks and months will continue to be challenging for our customers and our colleagues and we do not expect the current strong sales growth to continue. A number of the decisions we have made have materially increased costs but meant that we have done the right thing for our customers and set us up well for the future.”