Sainsbury’s ups guidance amid strong first half

Sainsbury’s has raised its full-year guidance and now expects a retail underlying operating profit of more than £1bn for its full-year results following strong sales in its first half.

It comes as Sainsbury’s reported a 5.2% rise in retail sales excluding fuel for the half-year ended 13 September 2025, driven by growth in its grocery business.

Grocery sales increased 5.3% over the period, while general merchandise and clothing sales rose 3.3%. Meanwhile, Argos sales rose by 2.3%, but fuel sales fell 11.3%.

Retail underlying operating profit was £504m over the half-year period, which the company said was ahead of expectations and broadly in line with the previous year. Sainsbury’s added that strong trading and cost savings had allowed it to invest further in value, customer service and product quality, offsetting higher employment and regulatory costs and disruption linked to store space changes.

The group noted it was halfway through a three-year plan, set out in February 2024, to strengthen its customer proposition relative to competitors “whilst navigating high levels of operating cost inflation”.

Simon Roberts, CEO of Sainsbury’s, said: “We started this year with one clear priority – to sustain the strong competitive position we have built over the last five years. We have delivered on this in the first half, with focused and effective investment to ease cost-of-living pressures, keeping price inflation behind the wider market and delivering our winning combination of great value, trusted quality and leading service. This has driven continued grocery volume growth ahead of the market for a fifth consecutive year and a profit performance ahead of our expectations.

“We planned for a strong Summer and we really delivered, with leading product innovation, and outstanding fresh food availability when demand was highest throughout the hot weather. At Argos we delivered a good seasonal performance, grew market share and improved profitability. A huge thank you to all our hard working and dedicated colleagues, suppliers and farmers who make this possible every day.”

He added: “We’re investing where it matters most with Aldi Price Match on everyday essentials and bringing personalised Your Nectar Prices to all supermarket customers. Customers saved an average of £14 on an £80+ big weekly shop with Nectar Prices. Value perception is improving across supermarkets, convenience stores and online.

“We’ve continued to invest in innovation too, including launching our new Taste the Difference Discovery ranges for restaurant quality food at home. In its 25th year, more and more customers are shopping Taste the Difference, driving the biggest premium own-label share gains in the market.

“Our offer has never been stronger. So while we expect the market to remain highly competitive, our momentum gives us real confidence as we head into Christmas and we have strengthened our profit guidance today.”