Sainsbury’s has been forced to delay a toy promotion and has warned there would be lower stocks of electronic goods for Christmas as supply chain problems continue to challenge retailers. Simon Roberts, the chief executive of the group, said the annual toy sale at Sainsbury’s had been delayed by two weeks – until next week – because the goods had only just reached ports in the UK. He said there was likely to be fewer electronic products on sale in the run-up Christmas because of the global shortage of computer chips. Roberts said rising costs were building before the festive season but the supermarket would “do all we can to mitigate inflationary headwinds as far as possible” for shoppers. Roberts said: “Our industry faces labour and supply chain challenges. However our scale, advanced cost saving programme, logistics operations and strong supplier relationships put us in a good position as we head into Christmas.” Sainsbury’s said it had largely shrugged off the problems with supplies that have dogged the UK industry – ranging from congestion at ports and shortages of shipping containers to staffing problems in factories and on farms – in the first half of the year with a return to profit and rise in sales as families bought more petrol and clothing and continued to cook more meals at home. Total sales, including fuel, rose 6% in the six months to 18 September, including a 0.8% rise in groceries despite issues with importing foods caused by a mix of the Covid-19 pandemic and Brexit. Clothing sales rose by one-third and fuel sales were up almost 63% as families returned to school and workplaces after last year’s lockdowns. Online grocery sales continued to rise, despite the easing of restrictions – increasing 13%. The group returned to profit, making £541m before tax, after a £137m loss a year before, saying it had cut costs at the Argos chain, reduced the cost of Covid safety measures and improved grocery sales. Sales at Argos fell by just over 7% after a busy 2020 when families were stocking up with kit to entertain children during lockdowns or technology and desks for work from homeRoberts said the reported fall in sales at Argos was not due to supply chain issues but problems had worsened in the early autumn He added that Sainsbury’s had gained market share from rivals by cutting prices on some key items and bringing in more innovative products While customers are returning to many pre-pandemic shopping habits, Roberts said online sales remained “very strong”. Sainsbury’s said it expected sales growth to moderate as shoppers returned to offices and dined out at restaurants and cafes more often, adding that it was on track to hit annual profit expectations.
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