Supermarket giant Sainsbury’s said people are shopping more in-store, as they want to see what they are buying amid the cost-of-living crisis. Its boss, Simon Roberts, said customers are being “really careful” about where they spend, “and they wanted to come in and see the deals and offers we had”.
The supermarket also said it was seeing rising sales of own-label goods as people seek deals. It came as the grocer, which also owns Argos, reported strong Christmas sales. Overall sales were up by 7.1% in the six weeks to 7 January, the firm said.
Sainsbury’s said people were still keen to treat themselves at Christmas, buying festive snacks and drinks and taking advantage of deals.
The cost of living is rising at its fastest pace in 40 years, putting pressure on household budgets, with many people struggling with rising food prices, as well as higher energy bills.
Mr Roberts said households had “managed their budgets differently” this Christmas.
With large gatherings once again permitted, following the pandemic, he said many people looked to entertain at home.
“Customers shopped early, buying Christmas treats and fizz more than once and looked for deals, taking advantage of Black Friday and other seasonal offers,” he said.
He added that many people find it easier to shop around for the best deals in store, rather than online. “For all of us, I’m sure it’s just much easier to do that when you go into a shop and see it all,” he said.
In Christmas week, walk-in sales in Argos stores were up 50% compared with last year. Total sales over the 16 weeks to 7 January, excluding fuel, rose 5.2%, compared with the same period last year.
The group said sales growth was driven by rising prices, although volumes had remained “resilient”. It also said customers watching the World Cup at home helped increase sales.
However, the UK’s second biggest supermarket said it remained “cautious” on the outlook for consumers. “We understand money will be exceptionally tight this year, particularly as many people wait for Christmas bills to land,” Mr Roberts added.
Last week the supermarket announced it would raise pay to at least £11 per hour for 127,000 of its workers as cost-of-living pressures bite.