Sainsbury’s Tu clothing sales dip despite "regained momentum"

Sainsbury's has revealed a mixed bag of results for the third quarter in terms of categories, with clothing sales down by 1.7% and Christmas clothing sales down by 6%.

Overall, during the 16 weeks leading to 6 January 2024, Sainsbury’s outperformed the market every week of this financial year and delivered "volume growth ahead of the market" for its fourth consecutive Christmas period.

Retail sales for the period were up by 6.5%, with like-for-like sales up by 7.4%.

Sainnsbury’s-owned brand Argos reported a strong performance thanks to its highly promotional merchandise. Third-quarter sales were up by 1.7%, driven by convenience and strong impact deals.

Simon Roberts, Chief Executive of Sainsbury plc, commented: "Across the quarter, Argos performed ahead of competitors in a highly promotional market. Argos delivered a strong Black Friday performance but a weaker Christmas against an exceptional performance last year."

Tu clothing, the supermarket’s fashion line, "regained some momentum in a market that remains highly promotional". As expected, partywear and Christmas pyjamas were popular amongst shoppers during the festive season. However, the company blamed the exceptionally warm weather, particularly over Christmas, for its declining revenues.

Roberts continued: "Our success is down to our entire team who consistently deliver market-leading customer service. I’d like to thank every one of my colleagues and am pleased we will be kicking off the new financial year with an industry-leading pay increase, investing a record £200 million to continue to pay the Real Living Wage across the country.

"We enter 2024 with strong momentum and next month we will share our updated strategy, building on all we’ve down to put food back at the heart of Sainsbury’s over the last three years. There is a lot to be excited about and we remain absolutely committed to delivering for our customers, colleagues and shareholders."