Sainsbury’s Q1 sales rise 4.9%, reaches highest market share in a decade

Published 01/07/2025, 07:28
© Reuters.

Investing.com -- J Sainsbury plc (LON:SBRY) on Tuesday reported a 4.9% rise in retail sales excluding fuel for the first quarter of 2025/26, marking its highest market share in nearly a decade.

For the 16 weeks to June 21, like-for-like sales excluding fuel rose 4.7%. Grocery sales increased 5%, while general merchandise and clothing grew 4.2%. Argos posted a 4.4% sales increase.

Online grocery sales rose 6%, with improved customer satisfaction. Convenience sales also grew 6%, supported by expanded fresh food space and strong availability. 

The company said customer satisfaction scores for value for money and convenience were the highest on record, based on internal surveys.

Taste the Difference fresh food sales rose 20% early in the summer season. Sainsbury’s launched over 450 new products during the quarter, including more than 250 under the Taste the Difference label.

Total (EPA:TTEF) retail sales including fuel increased 2.3%, while fuel sales rose 0.4%.

The company maintained its full-year guidance, expecting around £1 billion in underlying retail operating profit and more than £500 million in retail free cash flow. It said profit delivery would be more weighted toward the second half.

Tu Clothing sales rose 8%, outperforming the wider market, with womenswear up 13%. Sainsbury’s opened seven new convenience stores and two supermarkets during the quarter. Twenty-one store refurbishments were completed as part of its space rebalancing plan.

Argos continued to grow sales despite broader weakness in the general merchandise sector. Improvements to the digital experience led to higher app participation and online growth. 

The company said its product availability improved and that it had streamlined its own-brand offering from 27 to 14 ranges.

The Nectar loyalty program expanded, with Nectar Prices now available on more than 9,000 items. 

Over one million customers accessed personalized savings weekly through SmartShop and online. 

Sainsbury’s plans to launch Nectar360 Pollen later this year, a unified retail media platform intended to support campaign execution across Sainsbury’s and Argos.

The company reported record SmartShop usage and said trials of new handset functionality are under way. 

It continues to target £1 billion in cost savings by March 2027 through changes in operations, technology and store formats.

Sainsbury’s also partnered with three major supermarket chains to support FareShare’s surplus food initiative, under the “Let’s make a meal of it” campaign.

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