Sainsbury reports surprise increase in Q4 sales

J Sainsbury reported a surprise increase in fourth-quarter sales as it ponders whether to boost its bid for Argos owner Home Retail Group. Same-store sales rose 0.1 per cent excluding gasoline in the nine weeks ended March 12th, London-based Sainsbury said in a statement Tuesday.

The gain ended two years of declining sales and compares with analyst estimates for a 0.3 percent decline. “The market will remain competitive but we are confident that we will continue to outperform our major peers,” chief executive officer Mike Coupe said in the statement.

Sainsbury has proved more resilient than most of its mainstream rivals to intense competition from discounters Aldi and Lidl. The tough market conditions prompted Coupe to pursue a £1.3 billion cash and shares acquisition of non-food retailer Argos, and the CEO must this week decide whether to boost his proposal after Steinhoff International Holdings NV topped it with an all-cash offer. Tuesday's statement made no mention of Home Retail.

Bloomberg