1st Jul 2025 09:01
(Alliance News) - J Sainsbury PLC on Tuesday backed annual guidance as it reported progress across the board and first quarter sales ahead of market expectations.
Chief Executive Simon Roberts said: "Our winning combination of great value, outstanding quality, excellent availability and leading customer service has driven further share gains, reaching our highest market share in almost a decade."
Shares in the London-based food retailer fell 0.2% to 289.16 pence each on Tuesday morning in London. They had earlier traded as high as 297.20p. The wider FTSE 100 was up 0.2%.
Retail sales, excluding fuel, grew by 4.9% year-on-year in the 16 weeks to June 21 ahead of company-compiled consensus of 3.6% annual growth.
Excluding fuel, like-for-like sales rose 4.7% year-on-year versus consensus of 3.4%,
By segment, Sainsbury’s sales growth was 4.9% year-on-year versus consensus of 3.7%, including Grocery sales growth of 5.0% on-year ahead of 3.8% consensus and General Merchandise & Clothing sales growth of 4.2% versus consensus of 3.2%.
The grocer said it expects to continue to grow grocery volumes ahead of the market.
Argos sales rose 4.4% year-on-year ahead of 3.7% consensus, helped by warm and dry weather against a weak comparative. Here, Sainsbury highlighted strong customer traffic and volume growth in the quarter, supported by Big Red promotional events and its new marketing campaign, 'The A List', which showcases premium brands and trending ranges.
Sainsbury said it continues to expect to deliver Retail underlying operating profit of around GBP1 billion in financial 2026 compared to GBP10.4 billion in the financial year to March 1 2025, and Retail free cash flow of more than GBP500 million compared to GBP531 million a year ago.
Sainsbury hailed 30 successive periods of growth in primary customer numbers and noted it has gained market share for the third consecutive year, hitting its highest level since 2016.
"Our value proposition is stronger than ever and we've improved our price position against all key competitors year-on-year," the firm declared.
Sales of its premium range Taste the Difference rose 18%, convenience sales grew 6% as did Groceries Online sales.
Sainsbury said it is making good progress with its 'More for More' plan to rebalance space in supermarkets towards food, completing investments in 21 stores in the quarter.
The firm continues to expect benefits to build through the second half of the financial year.
In addition, Sainsbury opened seven new convenience stores and two new supermarkets in the quarter, both of which are performing ahead of expectations.
Tu Clothing sales grew 8%, driven by 13% growth in Womenswear, with strong seasonal performance in the warmer weather.
Sainsbury said it plans to further scale its Nectar prices offer and is working to generate up to 500 million personalised offers each week.
In addition, Sainsbury said it is confident in delivering GBP1 billion of cost savings by March 2027.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Sainsbury's