Yahoo Finance Shoppers flock to Argos as Royal Mail strikes put thousands off buying online
Shoppers flocked to Argos after Royal Mail strikes put thousands off buying Christmas presents online over fears they would not arrive in time.
Sales at Argos grew 7.1pc over the six weeks to January 7, according to latest data from its parent company Sainsbury’s.
Walk-in sales over the Christmas week were up 50pc compared to the same week last year, as industrial action at the Royal Mail left shoppers wary of ordering online and posting goods.
Simon Roberts, chief executive at Sainsbury’s, said: “Argos offered great value and quality, and, as train and postal strikes disrupted the country, customers appreciated its reliability and convenience.”
He added: “You couldn’t be sure you would post something and get it there on time.
“The fact you could order online at Argos and have it delivered within hours and pick it up, that really worked for customers.”
Despite its gains, Argos’ sales were still 0.4pc lower over the six weeks to January 7 compared to the same period in 2019.
It comes as Sainsbury's posted a rise in total sales of 5.2pc over the 16 weeks to January 7 compared to last year. It said sales over the festive season were not only driven by higher prices but the volume of goods sold too.
Postal workers are currently in talks with Royal Mail to resolve their ongoing pay dispute, which will run until January 20. There are no plans for further strikes, but more could emerge if no agreement is reached.
British supermarkets fought fiercely to attract customers in the run up to Christmas with Aldi and Lidl also posting record sales as consumers sought to save money on groceries.
Mr Roberts said Sainsbury's shoppers were increasingly opting for value products, frozen foods and own-label to save cash, but highlighted a rise in its upmarket Taste The Difference range too.
He said: “It was really clear to us that customers went all out for the big Christmas dinner this year… they really wanted to treat themselves and celebrate at home together.”
Kevin O'Byrne, Sainsbury's chief financial officer, said it was likely inflation would ease off this year in certain non-food products like clothing and general merchandise thanks to lowered freight and commodity costs.
He said: “There is some good news coming through on the inflation front.”
However, it is understood the supermarket is still facing continuous price rises in its food and drink supply chain.
Sainsbury's has extended its 'Aldi Price Match' offer to around 300 popular products in January and said it is the supermarket's “biggest value campaign yet”.
The promotion, which includes nappies, cereals and canned soups, guarantees selected items cost the same in Sainsbury's as at Aldi.
Sainsbury's told shareholders that profits for the year are now expected to be towards the upper end of its previously announced guidance of between £630mn and £690m.
It said that growth was buoyed by “inflation and relatively resilient volume trends”.
Mr Roberts said: “We delivered the best possible Christmas for customers as millions of households managed their budgets differently, hosting larger gatherings again and treating themselves at home.
Last week, Sainsbury's increased pay for 127,000 of its workers to at least £11 an hour as it competes for staff with rival supermarkets. It said it will extend free food for staff in stores and at depots for another six months.
Aldi started paying staff at least £11 an hour and £12.45 within the M25 at the start of January.
