Join our community of smart investors

J Sainsbury perked up by Argos

The middle-market grocer has had a helping hand from its Argos acquisition
March 16, 2017

J Sainsbury (SBRY) shares were remarkably resilient despite a 0.5 per cent contraction in like-for-like retail sales during the fourth quarter. Early headlines highlighted the relapse from quarter three, when the supermarket chain had moved into positive sales territory on this front.

IC TIP: Buy at 270p

But the share price has held up thanks to Sainsbury's increasingly diverse business model - a result of its acquisition of Argos from Home Retail Group a year ago. Sales there rose 3.8 per cent, or 4.3 per cent on a like-for-like basis during the final quarter. Bringing the two businesses together, like-for-like sales for the group rose 0.3 per cent over the same period.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in