Sainsbury's closes the third quarter of the financial year with a solid performance, strengthened by further market share gains during the Christmas period. In 16 weeks ended January 3, 2026, like-for-like sales (excluding fuel) grew by 3,4% on an annual basis, confirming the resilience of the food business in a context of more cautious consumers.
Il Grocery is confirmed as the main driver of growth, with sales increasing by 5,4 %, supported by an excellent dynamic of the fresh (+8%)The performance of the premium private label was particularly brilliant Taste the Difference, which records a growth of 15% in fresh, establishing itself as the fastest growing premium brand in the UK market. Over Christmas, Sainsbury's was also the only major retailer to increase the number of items in the cart, a sign of greater trust and increased spending by customers.
Overall, the total retail sales (excluding fuel) have increased by 3,9% in Q3, with a significant contribution from online. online grocery sales they have grown up of the 14 %, driven by the expansion of the service OnDemand, from increased orders, a higher average receipt and an improvement in availability and customer satisfaction. The channel also convenience posted a record quarter, benefiting from last-minute shopping and strong demand for fresh produce during the holidays.
The non-food context, however, is weaker. In a market characterised by high promotional pressure and limited demand, sales of general merchandise and clothing have decreased by1,1 %, while Argos recorded a decline in1,0 %The decline primarily reflects lower average selling prices and reduced demand for higher-value goods, despite volume growth and some share gains in specific categories.
Commenting on the results, the CEO Simon Roberts he emphasized how the brand has conquered grocery market share for the sixth consecutive Christmas, thanks to the combination of value, quality, service and availability. A central role was also played by the fidelity, with the extension of the Your personalized Nectar Prices to all supermarket customers, which led to record levels of participation in the Nectar program. During the Christmas period, customers saved an average of 27 pounds on Christmas shopping.
In light of the good performance, Sainsbury's has improved financial outlook, now estimating a retail free cash flow above £550 million, compared to the previous forecast of over 500 million. The expectation of a underlying retail operating profit above £1 billion, together with the commitment to give back over £800 million to shareholders Through dividends and buybacks, the group thus reaffirms its confidence in its growth trajectory, focusing on value, loyalty, and operational efficiency to sustain results even in the final part of the year.
