RETAILERS
Relief as Sainsbury sales ease upward
The British retailer brings its mostly miserable 2016 to a close with strong sales numbers, sending the stock up as much as 7%
London — J Sainsbury shares surged the most in more than a year on Wednesday after better-than-expected holiday sales eased concerns over its prospects and provided another sign that the UK’s supermarkets had a better-than-expected Christmas. The stock rose as much as 7.1% — the steepest intraday gain since January 5 2016 — on news that same-store sales at Sainsbury supermarkets rose 0.1%, excluding fuel, beating the median estimate for a 0.8% drop. Third-quarter revenue also topped projections at its Argos chain after its acquisition in 2016. The report is a reminder of Sainsbury’s resilience amid revivals at market leader Tesco and WM Morrison Supermarkets, which on Tuesday posted its best Christmas sales in seven years. Having resisted the incursions of discounters Aldi and Lidl better than most over recent years, Sainsbury’s growth has fallen behind rivals. "After a mostly miserable 2016, the struggling brand’s sighs of relief are audible," said John Ibbotson, director of consul...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.