Supermarket giant Sainsbury’s has improved its profit outlook as it revealed stronger grocery sales over the past half-year.
Published 22nd Oct 2026, 08:36 BST
The retailer said it saw shoppers buying greater volumes of products, as price inflation slowed down over the period.
But CEO Simon Roberts stressed that “many households are finding things tough at the moment” amid pressure on consumer budgets.
The London-based company said it has benefited through pricing measures, such as its loyalty Nectar Prices and its Aldi Price Match comparison scheme, to help bring in more customers.
Sainsbury’s told shareholders that total revenues increased by 4.1 per cent to £16.2 billion for the 28 weeks to September 12, compared with a year earlier.
Sales from continuing operations, excluding fuel, were up 2.6 per cent, on the back of a 2.9 per cent rise in grocery sales to £13.2 billion for the period.
Meanwhile, Sainsbury’s saw general merchandise sales, which includes its Tu brand, slip 3.4 per cent due to reduced sales space in stores and a “subdued clothing market”.
However, fuel sales shot 17.8 per cent higher over the half-year due to the sharp jump in prices since the Iran war pushed up global oil prices.
The company reported underlying operating profit of £525 million, up 3.6 per cent, for the half-year.
It said it is now on track to deliver an underlying operating profit of between £1.025 billion and £1.065 billion for the year.
It had previously guided towards a range of between £975 million and £1.075 billion, but said this would now be the equivalent to between £965 million and £1.065 billion due to its proposed sale of Argos.
In July, Sainsbury’s agreed to sell Argos for at least £120 million to Swift Partners – a new company set up by retail experts including former Co-operative Group boss Richard Pennycook – around 10 years after buying the brand for £1.4 billion.
Mr Roberts said: “As we progress the sale of Argos and further sharpen our focus on food, we are building a simpler, more focused Sainsbury’s.
“With great value, outstanding quality and exciting new food across our ranges, we’re looking forward to helping customers enjoy a really special Christmas.”
Alex Pugh, analyst at Freetrade, said: “Sainsbury’s growth is moving from the aisle to online.
"Supermarket sales rose just 1.6 per cent, while online grew 9 per cent, with rapid delivery up 27 per cent. Sainsbury’s is selling more food, but with margins barely moving, it’s working harder than ever for every pound.
"Shareholders are getting pretty much all of the free cash Sainsbury’s generates, through dividends and buybacks. With fewer shares in issue, earnings per share grew by more than 10 per cent, far faster than the underlying business.”
"Nectar is becoming Sainsbury’s most valuable asset. The data behind it powers personalised pricing, an advertising arm on track for £100m of extra profit, and now loans and savings with NatWest. Despite handing back its banking licence, Sainsbury’s still wants a slice of shoppers’ finances."