Covid costs weigh on Sainsbury’s: Grocer dives into the red despite booming sales
Covid hit: In the 12 months to March 6 Sainsbury’s slumped to a £261m loss
Essential retailer status has sent Sainsbury’s sales rocketing but it still dived into the red.
In the 12 months to March 6 sales jumped 7.8 per cent, but £485million in Covid-related costs and a major restructuring that saw around 1,150 jobs affected meant a £261million loss.
Chief executive Simon Roberts believes the new hybrid working model will mean sales in residential areas will rise and gains made online will continue.
Sainsbury’s grocery sales were up 7.8 per cent, helped by a 120 per cent rise in online orders.
At its Argos business, sales jumped 10.9 per cent, including a 68 per cent increase in digital sales.
But fuel sales slumped 45 per cent, with overall revenues of £29billion, up 0.2 per cent on a year earlier. It will pay a dividend of 7.4p a share.