Sainsbury's to lift wages by 5% after bumper Christmas trade

(Sharecast News) - UK supermarket chain Sainsbury's said it would increase wages by 5% after bumper sales in its key Christmas quarter. Sales over the four weeks to January 4 rose 3.8%, and Sainsbury's said it expected annual underlying retail operating profit to increase 7% at the mid-point of its £1.01bn - £1.06bn guidance range.

Third-quarter underlying sales rose 2.8%, with grocery up 4.1% and general merchandise and clothing down 0.1%. The Argos business was 1.4% lower during the period.

Party food sales were up nearly 40% in the festive season, with more than 200 bottles of fizz sold every minute in the key days ahead of Christmas.

Staff across both Sainsbury's and Argos will move to £12.45 per hour in March, and £13.70 for those based in London, matching the Real Living Wage, which is higher than the national minimum wage, with a further increase to £12.60 per hour in August and £13.85 respectively.

Reporting by Frank Prenesti for Sharecast.com