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Sainsbury's sees dip in clothing sales following exceptional performance in 2020

Tom Shearsmith
12 January 2022

Sainsbury’s has reported that own brand Tu's full price clothing sales were up in Q3 versus two years ago, noting strong sales in Christmas jumpers and matching family pyjamas.

The supermarket reported that whilst its clothing business remains strong, general merchandise and clothing sales down overall year on year due to exceptional performance in 2020 and limited availability in key product areas.

Overall clothing sales for the 16 week period to 8 January 2022 dropped 2.7% year on year. Full price clothing sales were up 38% versus two years ago as the company reduced markdowns and promotions.

Profits from its general merchandise and clothing business were "in line with expectations", reflecting stronger gross margins and operating cost transformation in the business.

Simon Roberts, Chief Executive of J Sainsbury plc, said: “I am really pleased with how we delivered for customers this Christmas. The backdrop was challenging and our teams worked hard throughout the year to make sure we had all of the products everyone wanted. Our suppliers did a great job in challenging conditions throughout the quarter and I thank them for all their support for our business.

“We also delivered a strong digital performance, responding to a surge in demand for online deliveries over Christmas and last-minute online gift shopping at Argos.

“Our teams have done a brilliant job working very hard in exceptional circumstances. We delivered great service in our supermarkets and strong availability this Christmas when it mattered most. I’m hugely grateful to all our team for everything they did to deliver for our customers and we closed all our stores on Boxing Day this year to give our colleagues a well-deserved break. We are increasing base pay for Sainsbury’s and Argos store colleagues to £10 an hour from March to recognise their brilliant efforts every day in serving our customers.”

Earlier this week, Sainsbury's announced an increase in its basic hourly rate pay for all Sainsbury's and Argos store colleagues as part of a £100 million investment.

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