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Sainsbury’s pandemic boost marred by restructuring

The supermarket chain saw higher grocery and general merchandise sales in the first half, but profits were wiped out by restructuring and impairment charges
Sainsbury’s pandemic boost marred by restructuring
  • Online grocery sales more than doubled in the six months to 19 September
  • As the integration of the Sainsbury and Argos businesses continues, the group suffered £480m in restructuring and impairment charges
IC TIP: Sell at 203p

In a similar vein to rival supermarket chains Tesco (TSCO) and WM Morrison (MWR), J Sainsbury (SBRY) has also benefitted from surging sales during the Covid-19 pandemic. The six months to 19 September saw retail sales (excluding fuel) climb by 7 per cent year-on-year to £14.8bn, driven by higher demand for both grocery products and general merchandise. The overall topline was squeezed by an almost 50 per cent collapse in fuel sales amid price deflation and fewer vehicles on the road.

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