The UK’s second-largest supermarket reports 2.6% half-year sales growth, with online groceries and its premium food range helping offset weaker clothing and general merchandise sales.
Sainsbury’s sales grew a slower-than-expected 2.6% in the six months to 12 September, the Guardian reported on 22 October. The UK’s second-largest supermarket also raised its annual underlying profit forecast and reported a wider statutory pre-tax loss.
Sales growth slowed from 3% in the first quarter to 1.9% in the second. In its coverage during trading on 22 October, the Guardian reported that Sainsbury’s shares had fallen 3.7% as the results were disclosed.
Chief executive Simon Roberts attributed the slowdown to shoppers limiting the number of items they bought because of living costs. He said customers had also restrained spending on clothing and expensive purchases, such as furniture, at Argos.
Sainsbury’s reported two different profit measures: its statutory result before tax and a separate underlying profit figure excluding Argos. The rise in underlying profit therefore does not mean the group recorded a statutory pre-tax profit.
| Measure | Reported amount | Comparison |
|---|---|---|
| Half-year statutory pre-tax loss | £63m | £14m loss a year earlier |
| Half-year underlying profit excluding Argos |
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| £366m |
| Up 5.2% on a year earlier |
| Annual underlying profit forecast | At least £1.02bn | Previous forecast: £975m |
Charles Allen, a senior retail analyst at Bloomberg Intelligence, said the figures suggested Sainsbury’s was not expecting profits to increase in the second half of the year. He pointed to tougher competition as inflation returned and rivals prioritised sales growth.
| Business or range | Sales change |
|---|---|
| Online groceries | +9% |
| Taste the Difference | +6% |
| Argos | −1.8% |
| Sainsbury’s general merchandise and clothing | −3.4% |
Looking towards Christmas, Roberts described the market as “pretty challenging” and said households were “finding it tough”. He said food inflation was well below some of the high levels forecast earlier in the year, but suggested that high energy and fertiliser costs could push food prices higher in 2027.
Ahead of the UK government’s October budget, Roberts urged ministers not to add to business costs. He cited earlier increases in business rates—the tax on business properties—and employers’ National Insurance contributions. After meeting ministers, he said he believed the government was listening to businesses, particularly on helping create jobs for young people.
Sainsbury’s is selling off Argos. The deal is expected to complete in February 2027, with the two businesses fully separated by 2029, the Guardian reported.
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