Sainsbury’s Q1 sales growth eased to 2.1% on a like-for-like basis for the 16 weeks to 20 June 2026, down from 4.7% in the same period a year earlier, as the grocer posted total retail sales (excluding fuel) of £9,153 million, per the Sainsbury’s Q1 2026/27 trading statement. Shares rose 2% on Tuesday.
The headline figure of 2.7% total retail sales growth reflected genuine consumer demand rather than price inflation alone, with volumes up across key categories and market share continuing to move in Sainsbury’s favour.
Grocery Leads, Argos Steadies
Grocery was the strongest performer, up 3.6% to £7.6 billion, with fresh food rising 5% year-on-year. Record berry and burger sales during the May heatwave and the best-ever Easter for lamb drove fresh food volumes. Taste the Difference grew 6% and Groceries Online jumped 12.5%.
Argos sales came in at £1,114 million, a fall of 0.5%, though volumes within the segment rose 2.2%. Lower average selling prices and cautious consumer spending offset demand for fans during the heatwave and large-screen TVs ahead of the World Cup.
General Merchandise and Clothing within the Sainsbury’s segment declined 3.7%, according to the official trading statement. Sainsbury’s-segment own-brand sales (excluding Argos) rose 3.1% to £8,041 million. The grocer is deliberately reducing general merchandise space in favour of food, and Tu Clothing dipped 2.1%, though management said that was ahead of a weak wider market.
Sainsbury’s Q1 Sales Growth in Context
The deceleration in like-for-like growth is a function of comparison rather than deterioration. In the full year 2025/26, Sainsbury’s reported grocery sales growth of 5.2% and said it had outperformed the market for the sixth consecutive year, per the Sainsbury’s preliminary results. Full-year 2025/26 retail underlying operating profit was £1,025 million, down 1.1% from £1,036 million the prior year, with retail free cash flow of £574 million, up £43 million year-on-year, per the Sainsbury’s financial review.
Dan Coatsworth, head of markets at AJ Bell, said the grocer is managing both ends of the market. ‘Sainsbury’s is finding life a little harder as first quarter sales growth slows. It reported 2.1% like-for-like sales growth versus 4.7% in last year’s comparative period.’
He added: ‘It’s not disastrous and the grocer is still striking a chord with both cost-conscious individuals and shoppers happy to spend a bit more on fancy items. Online grocery sales were notably strong, and Sainsbury’s continues to find ways to improve the in-store shopping experience.’
Value Strategy and Guidance
Value execution remains a core plank of Sainsbury’s consumer offer. The grocer held the largest Aldi Price Match in the market and ran Nectar Prices across roughly 11,000 products. Shoppers saved an average of £16-plus on an £80 weekly shop, and nearly a million more customers are now regularly using digital Nectar.
Sainsbury’s left full-year 2026/27 guidance unchanged: underlying operating profit of £975 million to £1.075 billion and retail free cash flow above £500 million. The company also flagged net space growth expected to contribute around 0.5% to retail sales in 2026/27, per the financial review.
Shareholder returns are supported by a £300 million share buyback programme, comprising a £200 million core buyback plus an additional £100 million return of net bank proceeds, per the 2026/27 guidance presentation. Capital expenditure is guided at £800 million to £850 million for the year.
The next test for the like-for-like trajectory comes in Q2, when the World Cup-driven electronics cycle at Argos and summer food volumes will need to absorb comparatives from what was Sainsbury’s strongest half of 2025/26.
