(Bloomberg) -- J Sainsbury Plc said its fiscal year is off to a good start with sales rising as more consumers choose the grocer for their weekly food shopping.

Food sales at Britain’s second-largest supermarket rose 4.8% in the 16 weeks to June 22, helped by an improved range, sharper pricing and its customer loyalty program. Sainsbury’s made the biggest market share gains of any UK grocer during the period as efforts to increase its focus on food start to pay off, the retailer said Tuesday.

Shares of Sainsbury’s fell 2% in early trading in London before paring back slightly. The stock has dipped more than 15% since the start of the year.

Sales of its clothing and home ranges were weaker, particularly its Argos division, which was hit by the unseasonably wet start to the summer in Britain. Sainsbury’s said it still expects to make as much as £1.06 billion ($1.3 billion) of underlying retail operating profit this year, in line with previous guidance. 

“Given the unfavorable weather in the UK, weak performance in clothing was expected especially as Sainsbury focuses more on assortment and less promotion,” said William Woods, an analyst at Bernstein.

What Bloomberg Intelligence Says:

Sainsbury’s food-first strategy is supporting margin, offsetting a 6.2% drop in Argos UK general merchandise revenue due to unseasonable weather, and a downturn in electronics (especially gaming) and high comparables (set to ease through the year).

— Charles Allen, BI retail industry analyst

Sainsbury’s Food Supports Profit Guidance as Argos Slips: React

In February, Sainsbury’s said it would cut £1 billion of costs and dedicate more space to food while cutting back on some of its clothing and home ranges. In further efforts to refocus the business on its core grocery division, Sainsbury’s has also agreed to offload its banking business to NatWest Group Plc last month after a long period in which it struggled to find a buyer.

The supermarket group said it has started its £200 million share buyback program, which is due to be completed before the end of this fiscal year.

(Updates with more details from statement, analyst comment and shares.)

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