Sainsbury's to reveal sales impact from reopening of hospitality sector

Sainsbury’s will this week reveal what impact the reopening of cafes and restaurants has had on its sales as it updates investors on post-lockdown trading.

Supermarket giant Sainsbury's is set to update the market on its recent trading performance. Picture: Dan Mullan/Getty Images
Supermarket giant Sainsbury's is set to update the market on its recent trading performance. Picture: Dan Mullan/Getty Images

In April, the supermarket giant reported a loss despite enjoying a boost to sales thanks to its status as an essential retailer during lockdown. Coronavirus-related costs and a major restructuring ate into profits.

The firm has capitalised on the accelerated shift to digital with online grocery sales doubling during the year, however it may find the going tougher as hospitality gets back to something resembling normality.

Sign up to our daily newsletter

The i newsletter cut through the noise

Ahead of this week’s trading update, Susannah Streeter senior investment and markets analyst at Hargreaves Lansdown, noted: “With the economy opening back up, the nation’s drift back to dining out might eat into its revenues.

“ONS figures showed that there was a 5.7 per cent fall in retail food sales in May, and as shoppers fill up fewer baskets, there is likely to be further competition on price, which could affect margins going forward.”

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions

 0 comments

Want to join the conversation? Please or to comment on this article.