Sainsbury's closed the first half of the 2025/26 financial year with solid results that exceeded expectations, confirming the strength of its model based on value, quality, and service. In the 28 weeks ended September 13, retail sales excluding fuel grew 5,2%, with food sales up 5,3% and general merchandise, including clothing, up 3,3%. The British retailer recorded underlying operating profit of £504 million, in line with last year but above internal expectations, thanks to strong commercial performance and cost savings that offset higher labor costs and expenses related to the reorganization of sales spaces.
Net profit more than doubled to £165 million, while underlying pre-tax profit rose 10% to £340 million. Retail cash flow reached £310 million and is expected to exceed £500 million for the full year. Sainsbury's will return over £800 million to shareholders through a special dividend of 11 pence per share and buyback programs totaling £350 million. The interim dividend rose to 4,1 pence (+5%).
CEO Simon Roberts emphasized how the company has kept prices below the market average, offering customers a winning combination of convenience and quality. The "Aldi Price Match" and "Your Nectar Prices" initiatives have generated average savings of £14 on an £80 weekly shop, improving the perception of value both in supermarkets and online. The premium brand Taste the Difference, which is celebrating its 25th anniversary, continues to grow with the “Discovery” range, which offers restaurant-quality dishes and ingredients for the home.
Argos, the group's subsidiary, saw sales grow by 2,3%, improving profitability and market share. The segment You Clothing recorded a +7,8% increase, outperforming the market for the fifth consecutive quarter. Online food sales also increased by 11,4%, driven by summer demand and the retail channel. OnDemand.
On the strategic front, Sainsbury's continues to reallocate space to expand its food offering and will open six additional large stores and 18 convenience stores in the second half of the year. Investments in technology, automation, and the supply chain are generating structural savings toward its target of £1 billion over three years.
Thanks to its financial strength and consistent cash generation, the group is now targeting a retail operating profit of more than £1 billion for the full year, looking confidently into the Christmas season. Roberts concluded: “We have built a stronger offering than ever before. With our momentum and the support of our colleagues, we are ready to offer customers a great Christmas and continue to gain market share in 2026.”
