Retail heavyweight J Sainsbury report forecast-beating sales for the first quarter of its financial year, helped by rising prices, despite fierce competition within the sector.
Group like-for-like sales, excluding fuel, rose 2.3 per cent in the 16 weeks to 1 July, compared to an analyst estimate of 1.9 per cent growth according to Bloomberg. Grocery sales for that period increased by 3 per cent after two quarters of stagnant growth.
"We have delivered a strong performance, driven by our differentiated strategy, offering customers quality, value and choice across food, general merchandise, clothing and financial services,” said chief executive Mike Coupe.
"The market is competitive and we continue to manage cost price pressures closely,” he added. “Our strategy is delivering and we are well placed to navigate the external environment."
The performance of retailers has broadly been resilient in recent months, despite a slump in the value of the pound making it more expensive to import certain goods.
Data last week showed that a hotter than average June had helped the UK’s leading supermarkets score their largest monthly year-on-year rise in sales since July 2013.
Also last week, data published by Kantar Worldpanel showed that supermarket sales growth accelerated to 5 per cent in the 12 weeks to 18 June. That was the strongest increase since March 2012.
Tuesday’s results for Sainsbury were the first released under a new reporting structure which combines figures for the Argos and Sainsbury brands. Sainsbury last year bought Argos for £1.4bn.
