Sainsbury’s has reported a slowdown in sales after the soggy spring weather hit trading at its Argos business.
The UK’s second largest supermarket said it had seen strong food sales, but the wet weather hit demand for garden equipment and outdoor furniture at Argos.
Sales overall were up 3% in the 16 weeks to 22 June, Sainsbury’s said, but this was slower than in the previous quarter.
One analyst suggested the Argos business was an “albatross” around the supermarket’s neck.
Sainsbury’s saw food sales rise 4.8%, with Nectar offers and Aldi price matching helping to attract shoppers.
It also said its ‘Taste the Difference’ premium own brand range had seen sales jump by 14%.
However, sales of non-food items were down and Argos saw sales drop 6.2%. Along with the wet weather, the retailer said cost-of-living pressures meant shoppers were still cautious about spending on big ticket items.
Argos also saw weaker demand for consumer electronics, particularly in gaming.
Sainsbury’s chief executive Simon Roberts said that he expected consumers to remain cautious until interest rates started to fall.
However, he added that the weather was a key factor in how and when customers choose to spend. The recent spell of hot weather had triggered a spike in sales of items such as fans and paddling pools.
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