Sainsbury's says more people shopping in stores

Supermarket giant Sainsbury's said people are shopping more in-store, as they want to see what they are buying amid the cost-of-living crisis.

Its boss, Simon Roberts, said customers are being "really careful" about where they spend, "and they wanted to come in and see the deals and offers we had".

It came as the grocer, which also owns Argos, reported strong sales over Christmas.

Overall sales were up by 7.1% in the six weeks to 7 January, the firm said.

Clare Bailey, an independent retail expert, said higher prices rather than people buying more would have boosted the sales figures.

"It's a natural consequence of inflation", she told the BBC.

However, Sainsbury's said volumes - the amount people bought - had also been "relatively resilient".

Industry body the British Retail Consortium said on Tuesday that December's rise in sales was largely due to goods costing more.

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The cost of living is rising at its fastest pace in 40 years, putting pressure on household budgets.

Many people are struggling with rising food prices, as well as higher energy bills.

But Sainsbury's said people were still keen to treat themselves at Christmas, buying festive snacks and drinks and taking advantage of deals.

He added that many people find it easier to shop around for the best deals in store, rather than online.

"For all of us, I'm sure it's just much easier to do that when you go into a shop and see it all," he said.

In Christmas week, walk-in sales in Argos stores were up 50% compared with last year.

Total sales over the 16 weeks to 7 January, excluding fuel, rose 5.2%, compared with the same period last year.

The group said customers watching the World Cup at home had helped increase sales.

It also said it was seeing rising sales of own-label goods as people seek deals.

Rising cost of living

Clare Bailey, an independent retail expert, said Sainsbury's rise in sales looked robust, but noted that the growth is still below the rate of inflation.

"Inflation is running at more than 10%, so arguably you'd expect their sales to have been even stronger," she said.

She said Sainsbury's would probably have also benefitted from people going out less, due to the rising cost of living, rail strikes and cold weather.

"Supermarkets as whole did well at the expense of hospitality this Christmas," she said.

"People held more parties at home, and some workplaces switched to having their Christmas gatherings in offices rather than outside, picking up party treats and drinks from supermarkets instead."

Sainsbury's boss Mr Roberts also said that people had looked to entertain at home this festive period, with large gatherings once again permitted following the pandemic.

"Customers shopped early, buying Christmas treats and fizz more than once and looked for deals, taking advantage of Black Friday and other seasonal offers," he said.

However, the UK's second biggest supermarket said it remained "cautious" on the outlook for consumers.

"We understand money will be exceptionally tight this year, particularly as many people wait for Christmas bills to land," Mr Roberts added.

Last week the supermarket announced it would raise pay to at least £11 per hour for 127,000 of its workers as cost-of-living pressures bite.