BUT COVID-19 COSTS WILL HIT PROFITS

THE new boss of Sainsbury’s got off to a flying start after revealing a lockdown-fuelled surge in sales yesterday.

Simon Roberts, in the top job a month, announced takings jumped 8.2 per cent over the past four months.

Excluding 600 stores that temporarily closed, sales leapt nearly 19 per cent. The big rise reflected panic-buying and soaring online sales, up 87 per cent during the lockdown.

The weather contributed to a 10.5 per cent rise in grocery sales. A 7.2 per cent general merchandise sales boost was reflected in a 10.7 per cent jump in takings at its Argos arm.

The bumper results also mark an upbeat swansong for Mike Coupe, who Roberts has replaced as chief executive.

Roberts cautioned: “The coming weeks and months will continue to be challenging for our customers and our colleagues and we do not expect the current strong sales growth to continue.” While sales rose, annual profits are expected to be flat after more than £500million of Covid-19-related costs, including hiring 25,000 staff to deal with the rush in demand, largely offset by the Government’s business rates holiday. Sainsbury’s said city centre stores are struggling to recover as people continue to work from home, with 26 remaining closed. Russ Mould, investment director at City firm AJ Bell, singled out the “stellar” performance at Argos. Broker Shore Capital upgraded its advice on Sainsbury’s shares from hold to buy.

Simon Roberts

HOUSE prices fell 1.4 per cent during June, leaving the average UK home worth £216,403, Nationwide said.

The drop meant the building society’s year-on-year figure was -0.1 per cent, the first time its annual reading has been negative since December 2012.

Robert Gardner, Nationwide’s chief economist, said the slowdown was expected “given the magnitude of the shock to the economy as a result of the coronavirus pandemic”.

Between April and June prices fell by 3.2 per cent.