Sainsbury’s blames ‘significant headwinds’ for drop in Argos sales at Christmas
AI Summary
Sainsbury's reported a mixed performance for the Christmas quarter, with supermarket sales increasing by 3.4% but Argos sales falling by 1%. The decline in Argos sales, particularly pronounced in the final six weeks, was attributed to weak consumer confidence, intense online competition, and widespread discounting. While Sainsbury's sold more items at Argos, lower average prices due to promotions and reduced spending on big-ticket items impacted revenue. Despite the Argos setback, Sainsbury's maintains it is on track to meet profit expectations and return over £800 million to shareholders. Grocery online sales grew 14%, while clothing sales were affected by milder weather and softer demand. The company's shares fell over 4% following the announcement.
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