J Sainsbury plc reported higher grocery sales and continued market share gains during the first 16 weeks of its 2026/27 financial year, supported by value pricing, online growth and strong demand for fresh food.
For the period to 20 June 2026, grocery sales increased 3.6% to £7.6 billion, while total retail sales excluding fuel rose 2.7% to £9.15 billion. Like-for-like sales excluding fuel increased 2.1%.
The UK supermarket said customers continued to respond to its Aldi Price Match programme, Nectar Prices promotions and investment in fresh food. Sales of fresh food increased 5%, while more than 380 new products were introduced during the quarter, with around half added to the Taste the Difference range.
UK supermarket competition remains intense as retailers continue to focus on value, loyalty programmes and product innovation to attract shoppers facing ongoing cost pressures.
Online grocery remained a strong growth area, with sales increasing 12.5%, while the retailer also reported record customer satisfaction for supermarket availability and online order fulfilment. Convenience stores benefited from strong demand during warmer weather.
The company also continued investing in retail technology. AI-powered stock forecasting and route planning were introduced to improve operations, while facial recognition technology has now been deployed in more than 55 stores, with plans to expand to up to 150 additional locations before Christmas.
General merchandise and clothing sales declined 3.7% year on year as Sainsbury’s continued reducing non-food space in favour of grocery, while Argos sales were broadly stable, down 0.5%.
Looking ahead, Sainsbury’s maintained its full-year guidance, expecting underlying operating profit of between £975 million and £1.075 billion, while noting that uncertainty linked to the conflict in the Middle East could affect trading during the remainder of the year.
