Sainsbury’s is eating other supermarkets’ lunch

Sainsburys

Supermarket giant Sainsbury’s has published a trading update for the 16 weeks to 21 June 2025, with the group continuing to show strong results.

The group’s total sales rose 4.9% and it continues to expect retail underlying operating profit of around £1 billion and retail free cash flow of more than £500 million.

Notably, the data shows more customers are choosing Sainsbury’s as their first choice for food, with 30 successive periods of growth in primary customer numbers and market outperformance over Easter.

Sainsbury’s also gained market share for the third consecutive year, reflecting strong, consistent delivery of value, quality and service and excellent availability, the group said.

“Our value proposition is stronger than ever, and we’ve improved our price position against all key competitors year-on-year. Value for Money customer satisfaction scores are the highest they have ever been, supported by the growth of our Aldi Price Match campaign to around 800 products and Nectar Prices offers available on over 9,000 products,” it said.

“We are delivering outstanding quality and innovation at affordable prices, with Taste the Difference sales up 18% and continued outperformance versus the market. We launched more than 450 new products in the first quarter, with more than 250 of these in Taste the Difference.”

Sainsburys 2
Sainsburys 2

Argos also sees strong sales.

Argos sales also grew ahead of a subdued, highly competitive and deflationary general merchandise market, helped by warm and dry weather against a weak comparative.

“Improvements to customers’ digital journeys are delivering a more tailored and personalised experience on our website and our app, driving an increase in app participation and strong online growth. This has been partially offset by in-store sales declines as we near the end of the impact of our store closure programme.

“Customers continue to spend carefully, and we have strengthened our value proposition across key categories and best sellers. Higher value perception scores have additionally been boosted by the popular Big Red promotional events, and we have launched a new marketing campaign, The A List, to showcase our premium brands and trending products,” it said.

Now read: Growth in UK incomes set to slow for the rest of 2025

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