Total sales slip after supply problems with technology, gaming kit and toys hit group\u2019s Argos chain<\/p>\n
Last modified on Wed 12 Jan 2022 03.36 EST<\/p>\n
Sainsbury\u2019s is to make \u00a360m more in annual profits than predicted after enjoying better than expected food and drink sales over Christmas as shoppers bought more champagne than ever before.<\/p>\n
The UK\u2019s second biggest supermarket said grocery sales rose 0.8% in the six weeks to 8 January, excluding Boxing Day, when it chose to close this year, as more people dined at home as the Omicron wave of Covid-19 put a dampener on trips to restaurants and pubs.<\/p>\n<\/p>\n
Total sales slipped 2.4% over that period as the company said problems with the supply of technology, gaming kit and toys hit trading at the group\u2019s Argos chain but Sainsbury\u2019s said profit margins on non-food had improved as it had cut down on discounting. Online grocery sales were down 15% year on year but still almost double pre-pandemic levels.<\/p>\n
Sainsbury\u2019s said it now expected to make underlying profits of \u00a3720m for the year to 8 January, up from \u00a3660m, with profit expectations boosted by the better than hoped for grocery sales, improved profit margins on non-food and lower than feared bad debts at its banking arm.<\/p>\n