Shares in Sainsbury's rallied to the top of the FTSE 100 index on Wednesday after the retailer reported bumper Christmas sales of more than £1bn, at least temporarily offsetting investor jitters around the risks relating to a volatile pound.
In early trading, shares in the group were up more than 5 per cent, propping up shares in peer Marks & Spencer too.
Chief executive Mike Coupe said that the group had enjoyed a “record Christmas week”, bolstered by over 30 million customer transactions at Sainsbury’s and over £1bn of sales across the whole group.
The company said that a robust performance at its Argos unit was also particularly driven by Black Friday and the Christmas trading period.
But Mr Coupe did strike a note of caution too.
“The market remains very competitive and the impact of the devaluation of sterling remains uncertain,” he said.
The pound has fallen close to 20 per cent since the UK voted to quit the EU in June. In November, the retailer reported a 10 per cent slump in profit for the first half of the year as costs surged in the wake of a slump in the pound.
However on Wednesday Mr Coupe said that Sainsbury’s is ”well placed to navigate the external environment” and that he remains “focused on delivering our strategy.”
