Sainsbury's festive sales sparkle but Argos struggles

Sainsbury's has revealed a jump in festive grocery sales as customers traded up to its premium ownbrand range but revealed ongoing pressure in its nonfood arm and Argos business.

- 

Sainsbury's and Argos. Photo: Adobe

(Adobe)

The UK's second largest supermarket chain behind Tesco posted a 5.1 per cent rise in total grocery sales over the six weeks to January 3, helped by strong demand for its Taste the Difference products.

But Argos sales fell 2.2 per cent in the period and Sainsbury's nonfood and clothing sales were one per cent lower.

In its third quarter overall, Sainsbury's said like-for-like sales excluding fuel lifted 3.4 per cent in the 16 weeks to January 3, which marked a slowdown on the 4.3 per cent notched up in the previous three months.

Despite tougher general merchandise trading, the group said it remained on track with recently upgraded retail earnings guidance of more than £1 billion for the full year.