Sainsbury’s wants to make clothes ‘more relevant and desirable’ after sales slump

Supermarket chain Sainsbury’s has revealed that retail sales increased by 6.8%. However, clothing line Tu’s sales fell 6.4% for the 52 weeks ending March 2, 2024.

Lower apparel sales were partly the result of a disciplined trading approach, with good inventory management protecting profitability in a seasonally weak and promotion-driven market.

However, there were also some disappointing performances in terms of range. In the fourth quarter, the company experienced availability issues on several core lines. This was also reinforced by “unusual weather”.

Looking ahead, the company plans to better align general merchandise and clothing in Sainsbury’s stores with customers’ messages, making the range “more relevant and desirable”. Combined with a more profitable food offering, this will deliver significantly better sales and profit returns on retail space.

Simon Roberts, Chief Executive of J Sainsbury plc, said: “We have the best combination of value and quality in the market and that wins us customers from all our main competitors, driving consistent volume growth in our market share as more customers choose us for their weekly shop and all their special occasions.

“We did that by ruthlessly investing in the price; £780 million in the last three years. We know times are still tough for so many households and we are doing everything we can to save money across our business to keep prices steady. low – last year alone we reduced 4,000 products.

“As we embark on our Next Level Sainsbury’s strategy, we will continue to make informed, balanced choices to support our customers, colleagues, communities and farmers.”

Despite the decline in clothing sales at Sainsbury, this does not reflect the wider market. Earlier this month, Asda’s George announced “strong growth” in fashion sales during the six months ending March 3, 2024.

The results reflect George at Asda becoming the third largest fashion retailer in Britain by sales volume. The company attributes this to its “continued focus on style, quality and value, while allowing busy customers to purchase their groceries and fashion all under one roof.”