Sainsbury’s grocery growth offsets weaker merchandise and Argos sales in Q3

UK-based supermarket concatenation Sainsbury’s posted stronger third-quarter market income and held its full-year nett outlook, contempt weaker show successful wide merchandise and Argos.

In the 16 weeks to 3 January 2026, full retail income excluding substance accrued 3.9% year-on-year to £10.02bn ($13.43bn)

Total retail sales, including fuel, climbed to £11.12bn, up from £10.76bn successful the aforesaid 4th past year.

Grocery income precocious 5.4% implicit the play portion wide merchandise and covering declined 1.1%.

Its online unit, Argos, reported a 1% driblet successful sales. The institution besides noted that measurement maturation was offset by little mean selling prices, reflecting a highly promotional situation and weaker request for higher-priced items.

Online market income roseate 14% successful the 4th portion convenience stores delivered a “record” performance. Fresh nutrient income accrued 8%, with Taste the Difference caller nutrient income up 15%.

The Tu covering marque recorded measurement maturation up of the wider covering market, contempt softer wide demand.

Homewares and furnishings marque Habitat posted a 6% income summation for the 4th portion the relaunched Chad Valley scope delivered 7% growth.

Over the six-week Christmas trading play to 3 January, full retail income excluding substance accrued 3.3%, supported by a 5.1% emergence successful market sales.

The retailer said it continues to expect retail underlying operating nett of much than £1bn for the 2025/2026 fiscal year, citing “strong market trading momentum and marketplace stock gains”.

Sainsbury’s CEO Simon Roberts said: “We person won market marketplace stock for the sixth consecutive Christmas period, again delivering our winning operation of value, quality, work and availability for customers. When we strengthened our nett guidance successful November, we said we planned to put successful the spot of our competitory presumption done the astir important trading play of the year.”

Sainsbury’s said it remains connected way to execute £1bn of outgo savings by March 2027 nether its “Next Level” strategy and highlighted ongoing concern successful technology, store operations and proviso concatenation efficiency.

The institution besides raised its guidance for retail escaped currency travel to much than £550m, up from erstwhile guidance of much than £500m.

The radical reiterated its volition to instrumentality much than £800m to shareholders during the existent fiscal twelvemonth done mean dividends, a £250m peculiar dividend and a £250m stock buyback.

"Sainsbury’s market maturation offsets weaker merchandise and Argos income successful Q3" was primitively created and published by Retail Insight Network, a GlobalData owned brand.