Sainsbury’s sales rise 3.1% as grocery momentum offsets clothing decline

Retail Insight Network··Read original
2▲1 ▼0Impact / 5
Summary · why it matters

Sainsbury's first-quarter sales increased by 3.1% to £8.04 billion in the 16 weeks to 20 June 2026, with the UK supermarket group gaining market share and outperforming the broader grocery sector. Grocery sales climbed by 3.6% to £7.6 billion, while general merchandise and clothing dropped by 3.7% to £438 million. Total retail sales excluding fuel grew by 2.7% to £9.15 billion, with like-for-like sales excluding fuel up by 2.1%. Fresh food sales increased by 5%, with the retailer reporting record-breaking sales in berries and burgers during the May heatwave and its best-ever Easter lamb sales. Groceries Online sales rose by 12.5%. Tu Clothing sales declined by 2.1%, which Sainsbury's said outperformed a soft clothing market, while general merchandise sales fell by 6.3%, reflecting an ongoing programme to shift space allocation away from non-food towards food. At Argos, sales dropped by 0.5%, as volume growth of 2.2% was offset by lower average selling prices amid subdued consumer spending. The retailer added more than 5,000 new products to its Supplier Direct Fulfilled range during the quarter, bringing the total to 26,000 live products, and said it remains on track to launch a Marketplace later in the financial year. Sainsbury's said it remains on track to deliver £1 billion of cost savings over the three years to March 2027. The retailer said facial recognition technology is now live in more than 55 stores, with up to 150 further stores planned before Christmas. Sainsbury CEO Simon Roberts said customers are looking for value now more than ever, and the company is consistently delivering outstanding quality at great value, driving an encouraging start to the year with continued volume growth and market outperformance. For the 2026/27 financial year, Sainsbury's continues to expect total underlying operating profit of between £975 million and £1.07 billion, and retail free cash flow of more than £500 million, while noting uncertainty over the impact of the conflict in the Middle East on its customers and business.

Impact on assets 1

Electrification & Mobility▲ · 1 stocks
J Sainsbury PLC
SBRY
▲ PositiveDemandrelevance

Grocery sales rose 3.6%, fresh food up 5%, and Groceries Online up 12.5%, indicating strong end-customer demand.