Sainsbury’s one hour delivery boosts supermarket’s food sales

Sainsbury’s food sales have continued to grow with the supermarket gaining a boost from its one hour grocery delivery service and its Aldi price match scheme.

The London-listed group, which launched a £200m share buyback programme in April, saw its overall sales grow 4 per cent year on year in the 16 weeks to June 22, 2024, with grocery sales increasing 4.8 per cent.

Sainsbury’s said this was down to a focus on “value and innovation” after it extended its Aldi price match scheme to include more than 650 products.

The number of customers using the supermarket’s one hour “on demand” delivery service grew more than 80 per cent during the quarter, with general online grocery sales up 14 per cent.

Argos, however, saw sales decrease by 6.2 per over the 16 weeks, with Sainsbury’s blaming “an unseasonal start to summer” which , impacted seasonal categories like house and garden and outdoor furniture especially hard.

It added that weaker sales of electronics had been driven by softer demand, particularly in gaming.

CEO Simon Roberts said:”We are pleased with our market-beating grocery performance and the early progress we’re making against our Next Level Sainsbury’s plan. We’ve been winning from competitors every month for 15 months, as more and more people are choosing Sainsbury’s for their big weekly shop.

“We are laser focused on delivering the best combination of value and quality in the market and our customers are recognising that with 98% of big baskets including Nectar Prices or Aldi Price Match. 

“Innovation continues to be a top priority and we launched 400 new products this quarter, almost half of which were Taste the Difference, which continues to outperform a strong premium market. 

“Our summer ranges are the perfect complement to this Summer of Sport and we’re gearing up for Wimbledon this week and England’s quarter final match on Saturday night.

“Our food business is going from strength to strength and I would like to thank all of my colleagues and our suppliers and farmers for the brilliant job they are doing every day to deliver for all our customers.”