Sainsbury's sales impress as Argos deadline looms

Supermarket chain Sainsbury's is expected to report improved sales when it updates the market on Tuesday ahead of the deadline for offers on Argos owner Home Retail Group.

Sainsburys is expected to submit a renewed offer for Argos-owner Home Retail Group this week. Picture: Contributed

Like-for-like sales excluding fuel look set to narrow to a fourth-quarter fall of 0.2 per cent, compared to a drop of 0.4 per cent in the previous quarter, according to analysts at Jefferies.

The move would signal a boost for the Big Four grocer after the ongoing supermarket price war dragged down sales to a fall of 1.9 per cent last year. Sainsbury’s will be looking to drum up a positive picture of the business before the deadline for formalising offers on Home Retail Group on 18 March.

The supermarket said it would create a “world-leading” retailer bigger than rivals John Lewis and Amazon UK when it tabled an improved £1.3 billion cash-and-shares offer for Home Retail in February. South African retailer Steinhoff has attempted to gatecrash the deal with a £1.4bn offer.