Sainsbury’s sales are on the up but Nisa’s no done deal

Sainsbury’s boss Mike Coupe today appeared to play down the possibility of the supermarket taking over convenience store chain Nisa in a £130 million deal.

Sainsbury’s has been linked to a deal for member-owned Nisa, which last week confirmed it had offered a potential bidder a period of exclusivity. Its interest is thought to have been sparked by Tesco’s £3.7 billion swoop on wholesaler Booker.

Coupe today refused to be drawn on the subject, saying “a large corporation like Sainsbury’s has lots of conversations with lots of people all the time. Most of these conversations happen in private and most come to nothing, that’s just the nature of running a large organisation.”

His comments came as the company, which bought Argos last year, reported a better-than-expected 2.3% rise in same-store sales in its first quarter.

Grocery sales were 3% higher. Coupe acknowledged that rising inflation played a role, but said better sales of its own-brand products was the key driver. It launched 430 new and improved products in the quarter, including a roasted tomato and feta quiche and pulled pork burgers.

Coupe added that Sainsbury’s had improved its prices compared with competitors. Like rivals, the chain has been trying to lower prices to fend off discounters Aldi and Lidl, despite the weaker pound raising costs. Items such as chicken and apples remain cheaper than they were three years ago, Coupe said.

General merchandise sales were dented by the closure of Argos and Habitat concessions in Homebase stores, but rose 1%. Sales through Argos’s Fast Track delivery service rose 36% as customers snapped up paddling pools and fans during the heatwave.

Overall, Coupe said he had not seen any major shifts in consumer behaviour, though there were some signs shoppers were eating at home more amid the rising cost of living.

Sainsbury’s shares rose 2.4p to 251.3p.