Sainsbury's Share Price Slightly Higher As Company Grows E-Commerce Sales by 120%

Summary:

A growth in e-commerce sales by 120% drives up Sainsbury's share price this Friday, allowing for a higher close this week.

Sainsbury’s share price experienced a marginal gain on Friday after data from Edge by Ascential showed a 120% increase in its e-commerce sales. The report’s data sets do not surprising, given the enforced change in shopping habits that UK shoppers had to make due to pandemic-induced lockdowns.

Other UK supermarket chains such as Morrisons and Tesco also saw growth in their e-commerce divisions, with 55% and 49% growth, respectively. The data shows that online shopping in the UK has come to stay, whether lockdowns are there or not. Sainsbury’s seems to have positioned itself better than the rest to benefit from this boom.

CEO of Sainsbury’s Simon Roberts attributes this growth to its focus on digital transformation initiatives that were put in place earlier in 2021 to serve their clients better. The Sainsbury’s share price is up 0.72%, allowing it to close higher for the week.

The last bounce off the ascending trendline and the 286.3 price level is now challenging 295.1. The price needs to breach this level for 304.5 to become available. 312.3 and 323.0 are additional price targets to the north if the advance continues. 342.0 remains 2021’s high.

On the flip side, the potential for a continuation of the downside correction is enhanced if the 295.1 resistance level rejects the bulls. This rejection could spur a pullback that targets the 286.3 support, thus forming a bearish flag. If the price dips below this level, 269.5 and 251.3 become additional targets to the south, with the latter completing the measured move from the pattern.