According to Sainsbury’s annual results statement, its clothing division, Tu Clothing, has officially become a £1 billion brand. Despite food being the company’s primary focus, Tu Clothing has experienced remarkable success by surpassing pre-pandemic sales levels, achieving a 3.1% increase. While the statement did not disclose specific category performance, it did emphasize the brand’s impressive online sales growth of 49% compared to two years ago.

Over the past year, Tu Clothing has achieved a sales growth of 12.7%, breaking the £1 billion sales barrier. Furthermore, Sainsbury’s reported a shift in consumer behavior, with 89% of clothing purchases made at full price, indicating a decrease in promotions. This change was attributed to a reduction in promotional activities. Although clothing isn’t Sainsbury’s core focus, the success of Tu Clothing has led to improved profitability and increased investment in the food business.

Overall, Sainsbury’s profitability has significantly improved compared to the previous year’s losses caused by the pandemic. Pre-tax profits for the 12 months ending in March reached £854 million, a substantial contrast to the £164 million pre-tax loss reported in the previous year. Retail sales, including fuel, saw a 3.4% increase, while sales excluding fuel declined by 2.6%. General merchandise sales, which include clothing, fell by 4.6% compared to the 2019/20 fiscal year and dropped by 11.9% from the year before. Sainsbury’s attributes these declines to availability challenges in certain product areas and a focus on profitable sales.

Despite the positive results, Sainsbury’s has issued a caution that profits may be impacted in the upcoming year as the company reduces prices to alleviate the cost-of-living crisis for customers. Nevertheless, the success and growth of the Tu Clothing brand have significantly contributed to Sainsbury’s overall profitability and continue to support investments in the food business. Tu Clothing’s achievement of becoming a £1 billion brand showcases its strong position in the fashion market and its ability to adapt and thrive within a changing retail landscape.

Useful links:
1. Sainsbury’s Tu Clothing’s New Transitional Looks
2. Wedding Guest Dress Inspiration from Sainsbury’s Tu Clothing