Sales of clothing at Sainsbury’s and Argos outperformed the market with growth of more than 4% in the year to 11 March, the supermarket reported this morning.
Sainsbury’s Tu Premium
However, overall group pre-tax profit fell 8% to £503m.
Group sales rose 12.7% to £29.1bn but Sainsbury’s like-for-like sales fell 0.9% compared with the previous year.
The retailer said general merchandise and clothing sales growth have been impacted by reduced consumer confidence, and a marked slowdown in real-pay growth.
It believes shopping for clothing in supermarkets has become firmly established and said 8 million customers now buy Tu clothing.
Sainsbury’s has increased its market share by volume by 20 basis points, making it the sixth-largest clothing retailer by volume in the UK. It said it had a strong position in the womenswear and childrenswear markets, and opportunities for future growth in menswear.
In September it launched Tu Premium womenswear with the aim of offering quality, styling and fabrics to rival high street fashion brands at significantly lower prices.
It pointed to standout pieces such as the women’s leather biker jacket at £95 and a silk blouse at £30.