Sainsbury’s has taken a 13% hit in ecommerce sales year-on-year as customers deal with the ongoing cost-of-living crisis.
The UK’s second largest supermarket has reported pre-tax profit of £327m, down from £854m in the same period last year. Despite that, revenues have risen 5.3% to £31.491bn.
For the 2023-2024 year, Sainsbury’s expects profit between £640 and £700m, ahead of analysts’ prediction of £631m and despite the outlook for consumer spending remaining “uncertain”.
This comes amid Sainsbury’s £560 million investment in keeping its prices “low over the last two years”.
Despite the ecommerce sales dip, the firm suggested that online productivity has improved with items picked per hour up 6% year-on-year and up 9% on pre-pandemic levels.
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Chief executive Simon Roberts said: “We really get how tough life is for so many households right now which is why we are absolutely determined to battle inflation for our customers. Our focus on value has never been greater and we have spent over £560 million keeping our prices low over the last two years.
“As a result, we are now the best value compared to our competitors that we have been in many years and we are delivering improved market share performance in Sainsbury’s and Argos.
“We are two years into our plan to put food back at the heart of Sainsbury’s and have focused our efforts on reducing costs right across the business, which has enabled us to make the right decisions for our colleagues and customers.
“Our colleagues do a fantastic job serving our customers every day and we know that they are also dealing with the impact of the rising cost of living.
“That’s why, over the last 12 months, we took the decision to invest £225 million in supporting colleagues including raising colleague pay three times, becoming the first major supermarket to pay our people the Living Wage across the whole country and providing free food at work and increased colleague discount.”