Sainsbury’s, the UK’s second-largest supermarket chain, is set to increase workers wages by 5% following its “biggest ever” Christmas season. The pay hike, which outpaces inflation, aims to support employees amidst rising living costs.
From March 2025, 118,000 hourly-paid Sainsbury’s and Argos workers will see pay increases. Outside London, hourly wages will rise from £12 to £12.45 in March, climbing to £12.60 by August. In London, wages will increase from £13.15 to £13.70 in March, reaching £13.85 by August. This will push annual pay for a full-time worker outside London from £22,882 to £24,026 by summer.
The move aligns with the government’s planned minimum wage increase in April, which will see hourly rates rise to £12.21 for workers aged 21 and over.
Record Christmas Sales Propel Wage Increase
Sainsbury’s impressive sales growth during the Christmas period was a driving factor in the wage announcement. The retailer reported a 4.1% rise in grocery sales for the 16 weeks to January 4, with overall group sales up 2.7%, excluding fuel. A notable 40% surge in party food sales contributed to the festive success.
Chief Executive Simon Roberts highlighted the supermarket’s ability to meet customer demand with its focus on quality, value, and service. He noted, “Customers shopped later than ever, and we achieved our highest ever sales in the final days before Christmas.”
Strong Market Performance Amidst Competition
Sainsbury’s wage increase follows a similarly strong performance by Tesco, which recently claimed its highest market share since 2016. Both supermarkets saw customers gravitating towards them during the crucial Christmas shopping season, boosting their respective sales figures.
Sainsbury’s assured shareholders that its retail operating profits are expected to fall within the £1.01bn to £1.06bn range, thanks to strong momentum in its grocery division. However, sales in its Argos division saw a slight decline, offset by the booming grocery business.
The Workers Union Says…
“Sainsbury’s decision to raise wages is a clear recognition of the vital contributions made by their hardworking UK employees. With inflation continuing to strain household budgets, this increase provides much-needed relief to workers. However, we urge other employers to follow suit and ensure that pay keeps pace with the rising cost of living.”
