Sainsbury’s share price surges ahead of grocer’s Q3 statement

Analysts flagging near one-percent rise in sales

Sainsbury’s share price surges ahead of grocer’s Q3 statement

Shares in J Sainsbury (LON:SBRY) have advanced in London in today’s session, ahead of the company’s third-quarter results statement tomorrow when the grocer is expected to post a rise in sales. Investors are also digesting the latest industry data which pointed to a rise in sales and a drop in market share for the blue-chip supermarket.

As of 10:50 GMT, Sainsbury’s share price had added 1.49 percent to 244.60p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.32 percent higher at 7,721.38 points. The group’s shares have lost about four percent of their value over the past year, as compared with an over six-percent rise in the Footsie.

Analysts flag sales rise

Sainsbury’s is scheduled to update investors on its third-quarter performance tomorrow and Reuters reports that analysts on average are forecasting a like-for-like sales rise of 0.9 percent. The result would mark a slight pick-up from its second quarter.

Sainsbury’s is the second FTSE 100 grocer to update investors on its Christmas performance, following today’s statement by Morrisons (LON:MRW) and ahead of Tesco’s (LON:TSCO) results on Thursday.

Latest Kantar data

The latest Kantar Worldpanel data meanwhile revealed today that Sainsbury’s sales had managed to increase sales across its convenience stores, larger supermarkets and online deliveries in the 12 weeks to December 31, 2017, growing overall by two percent.

“This is against the backdrop of the retailer’s continuing strategy of moving away from promotions, selling 5.6 percent fewer items on offer than during the same period last year,” Kantar said in a statement. The grocer’s market share, however, dipped by 0.3 percentage points to 16.4 percent during the reported period, with German discounters continuing to pressure the UK’s ‘Big Four’ supermarkets.

As of 11:06 GMT, Tuesday, 09 January, J Sainsbury plc share price is 245.30p.

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