A wet spring has cost Sainsbury's as trading slowed at its Argos business.

The UK's second largest supermarket saw strong food sales in the 16 weeks to June 22, but a lack of demand for garden equipment and outdoor furniture cost the retailer.

Cost of living pressures facing consumers also hit non-food sales.

Sales rose 3% overall, slower than the previous quarter. Food sales are up 4.8%, much down to Nectar offers making prices competitive with Aldi.

In spite of the current cost pressures faced, the 'Taste the Difference' brand saw sales jump by 14%.

However, Argos saw sales drop by 6.2% as people remain cautious around non-essential items.

Mr Roberts, Chief Executive of Sainsbury's, said: "We are pleased with our market-beating grocery performance and the early progress we’re making against our Next Level Sainsbury's plan. 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.

"We are laser focused on delivering the best combination of value and quality in the market and our customers are recognising that with 98% of big baskets including Nectar Prices or Aldi Price Match. Innovation continues to be a top priority and we launched 400 new products this quarter, almost half of which were Taste the Difference, which continues to outperform a strong premium market. Our Summer ranges are the perfect complement to this Summer of Sport and we’re gearing up for Wimbledon this week and England’s quarter final match on Saturday night.

"Our food business is going from strength to strength and I would like to thank all of my colleagues and our suppliers and farmers for the brilliant job they are doing every day to deliver for all our customers."

FTSE 100

The UK's flagship share index, the FTSE 100, was up 39-points at 8,160 shortly after opening this morning.

Brent crude oil futures were up 0.50%, trading at $86.67 a barrel.

More like this…

View all