Play all audios:
It said Osborne should give firms a break from paying National Insurance for new staff. Chief executive Justin King said: “We don’t think he’s doing enough to support job creation.”
Osborne, who faced criticism for slapping a so-called “pasty tax” on hot food in last year’s Budget, needs to avoid shocks and boost confidence, he said. Sainsbury’s created about 6,000 jobs
last year. King was speaking as a trading update showed that Valentine’s Day and Mother’s Day helped to boost sales 4.2 per cent in the 10 weeks to March 16 and 2.1 per cent for the year.
It sold 84 per cent more of its own-label champagne in the week before Valentine’s Day and flower sales rose in double figures around then and Mother’s Day. Non-food sales are rising at
nearly three times the rate of food, with clothing sales up almost 20 per cent over the same time a year ago. Batman, Rapunzel and Spiderman children’s costumes were big sellers during a
fancy dress Bring A Book To School week. The chain expanded convenience shops this year by 87 to 523, driving an 18 per cent rise in convenience sales. Online grocery sales increased nearly
a fifth, with more than 190,000 customers a week. The group declined to comment on talk that shareholder Qatar Investment Authority was interested in buying rival Marks & Spencer.
Finance chief John Rogers said: “We have a good working relationship with the Qataris and they’re very supportive.” It also said it had no plans to follow rival Tesco in buying branded
restaurant businesses such as Giraffe. “Our restaurants work really well,” Rogers said. The horse-meat scandal did not affect the chain but consumers were buying more fresh rather than
frozen and processed meat. Its By Sainsbury’s own label brand and price-matching promotions were still popular. King said: “We expect the challenging economy to continue but we remain
confident we can outperform the market.” The shares rose 6¼p to 371½p.