Supermarkets are already balancing higher wage, freight and energy costs with keeping up with the competition, but Argos greases the tightrope for J Sainsbury. Owning the former catalogue retailer makes Sainsbury’s more vulnerable to a decline in discretionary spending than big rivals such as Tesco or Asda.
Sales at Argos fell by just over 10 per cent during the first quarter of this year and were almost 5 per cent behind the pre-pandemic level, even if the rate of decline eased during the latter 11 weeks. Underlying pre-tax profits are still expected to come in at between £630 million and £690 million this year, down from £730 million last year when sales were amplified during lockdown.
Knowing where demand lands for non-food goods later this
