UK DIY News

Sainsbury's and Argos report on Q4 trading

Sainsbury's has reported on fourth quarter trading, covering the nine weeks to 11 March 2017.

A summary of the results follow. The full publication can be found here.

Combined Sainsbury’s and Argos like-for-like sales up 0.3 per cent (excl. fuel)
Sainsbury’s: Total Retail sales up 0.1 per cent (excl. fuel) and like-for-like Retail sales down 0.5 per cent (excl. fuel)
Argos: Total sales up 3.8 per cent and like-for-like sales up 4.3 per cent

Mike Coupe, Group Chief Executive, said: “We are pleased with this performance and are making good progress against our key priorities. Customers appreciate the quality, choice and value of our differentiated food offer and our Tu clothing brand again performed ahead of the market, with sales up five per cent.

“Argos delivered another strong quarter of growth, with like-for-like sales up by over four per cent. We are investing in digital to deliver excellent service and availability, with enhancements to the Argos website and app. Online participation is growing, driven by mobile and Fast Track delivery and customers are responding well to new ranges.

“Sainsbury’s Bank continues to deliver good growth and our competitive personal loan offers sold well.

“The market remains very competitive and the impact of cost price pressures remains uncertain. However, we are well placed to navigate the external environment and remain focused on delivering our strategy.”

Total Retail sales and like-for-like Retail sales performances for Sainsbury’s, Argos and the Group are set out in the tables below:

	Q1	Q2	H1	Q3	Q4	H2	FY
Sainsbury’s Retail sales growth excluding fuel
Total	0.3%	(0.4)%	(0.1)%	(0.3)%	(1.4)%	(0.6)%	(0.4)%
Total (excl. impact of sale of Pharmacy business)				0.8%	0.1%	0.6%
Like-for-like	(0.8)%	(1.1)%	(1.0)%	0.1%	(0.5)%	(0.1)%	(0.6)%

Sainsbury’s Retail sales growth including fuel
Total	(0.1)%	0.0%	(0.0)%	1.4%	(0.3)%	0.8%	0.4%
Total (excl. impact of sale of Pharmacy business)				2.4%	1.0%	1.9%
Like-for-like	(1.0)%	(0.5)%	(0.7)%	1.7%	0.3%	1.2%	0.2%

Argos Retail sales growth				Q3	Q4	H2
Total				4.1%	3.8%	4.1%
Like-for-like				4.0%	4.3%	4.1%

At the end of the quarter, Sainsbury’s had 605 supermarkets and 806 convenience stores (including seven franchise stores).

At the end of the quarter, Argos and Habitat store estate was as follows:

2016/17	H1	Q3	Q4
Argos stores	725	723	712
Argos in Sainsbury's	15	30	41
Argos in Homebase	95	83	57
Habitat	4	7	8
Other	4	42	40
Total	843	885	858

Argos’ historic total and like-for-like sales performance is set out below. This reflects its pre-acquisition periods: FY2015/16 for the 52 weeks to 27 February 2016; Q1 for the 13 weeks to 28 May 2016; Q2 for the 13 weeks to 27 August 2016; and H1 for the 26 weeks to 27 August 2016