(Alliance News) - J Sainsbury PLC on Tuesday posted a slip in first quarter sales as it warned the cost of living crisis will "intensify" over the remainder of the year.
The grocer also promoted Commercial & Retail Finance Director Blathnaid Bergin to be its new chief financial officer.
Shares were up 2.4% at 213.40 pence each on Tuesday morning in London.
Sainsbury's said grocery sales in the first quarter ended June 25 fell 2.4% yearly "against last year's elevated Covid-19 driven levels". On three years earlier, prior to the onset of the pandemic, grocery sales were 8.7% higher.
Total retail sales, excluding fuel, were down 4.5% yearly. Including fuel, they were down 4.0%.
Consumers in the UK have come under pressure from an inflation-driven cost of living crisis.
Sainsbury's Chief Executive Simon Roberts said the company is doing all it can to keep prices on shelves as low as possible.
"We really understand how hard it is for millions of households right now and that's why we are investing GBP500 million and doing everything we can to keep our prices low, especially on the products customers buy most often. We're working hard to reduce costs right across the business so that we can keep investing in these areas that customers care most about. The progress we are making on improving value, quality, innovation and service is reflected in our improved grocery volume market share," Roberts said.
"The pressure on household budgets will only intensify over the remainder of the year and I am very clear that doing the right thing for our customers and colleagues will remain at the very top of our agenda."
In addition, the company said Kevin O'Byrne is to retire from his role as CFO in March 2023, the conclusion of its financial year.
It has promoted Commercial & Retail Finance Director Bergin to be its next CFO, following a "thorough" external and internal search. He joins the board on March 6 next year.
"Bergin has a strong record of financial leadership and, over the last three years at Sainsbury's, has supported the development and delivery of our strategy," the company said.
Prior to joining Sainsbury's, Bergin was chief finance operations officer at insurer Aviva PLC.
Looking ahead, Sainsbury's backed its profit outlook as it continues to expect underlying pretax profit of between GBP630 million and GBP690 million. It had reported underlying pretax profit of GBP730 million in financial 2022, so it expects a decline of as much as 14%.
By Xindi Wei; xindiwei@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Sainsbury's (SBRY)