Sainsbury's: Argos Transformation Driving Improvements

Sainsbury's has published its first quarter trading statement covering the 16 weeks to 20 June 2026, noting that 'consistently great value drives continued volume growth and market share gains'.

Simon Roberts, Chief Executive of J Sainsbury plc, said: “Customers are looking for value now more than ever. We are consistently delivering outstanding quality at great value, so more people are choosing Sainsbury’s for their big weekly shop. This has driven an encouraging start to the year with continued volume growth and market outperformance.   

“We’ve kept our strong focus on value, with the biggest Aldi Price Match in the market , across supermarkets and convenience stores, and Nectar Prices on around 11,000 products. Leading product innovation and outstanding quality fresh food set our offer apart, with standout performances in summer favourites like berries, barbecue and deli. And we're achieving record customer satisfaction scores on availability in supermarkets and complete orders in Groceries Online, reflecting strong operational momentum. This combination is really delivering at the big customer moments and we outperformed the market at Mother's Day, Eid al Fitr, Easter and the May heatwave. 

“As customers make more considered food choices, we’re going further to make healthy everyday essentials more accessible and affordable, starting with fibre, fruit and veg. From new products and reformulation to clear Full on Fibre labelling on over 500 products, we’re making it easier for families to choose healthier options.   

“With the World Cup in full swing and an exciting summer of sport ahead, I want to say a huge thank you to all our Sainsbury’s and Argos colleagues and our farmers and suppliers for showing up so well for our customers every day.”   

2026/27 Outlook

We will continue to make deliberate, balanced choices to sustain our strong competitive position and expect to continue to outperform the grocery market. We have had an encouraging start to the year but the impact of the conflict in the Middle East on our customers and our business remains uncertain and we continue to expect to deliver Total underlying operating profit of between £975 million and £1,075 million and Retail free cash flow of more than £500 million.

Strategic highlights include:

First choice for food

We have sustained our strong competitive position and outperformed the grocery market through consistently delivering great value and availability while amplifying our core brand strengths in fresh healthy food, innovation, quality and service. This delivered another quarter of volume growth and market share gains despite tough comparatives, with more customers choosing Sainsbury’s for their big trolley, weekly shop.

Loyalty everyone loves

Nectar participation continues to grow, with almost 1 million more customers regularly using Digital Nectar15, recognising the benefits of the great value they can access through our trusted Nectar loyalty programme and coalition partnerships. This is helping further accelerate the growth of our Nectar360 Retail Media business.

Save and invest to win

We remain on track to deliver £1 billion of cost savings over the three years to March 2027, investing in technology and infrastructure to drive operational efficiency whilst improving customer experience. 

More Argos, more often

Our Argos transformation plan is driving improvements to choice, availability and service. These contributed to encouraging volume growth in the quarter, offset by the impact of subdued consumer spending on average selling price, with sales down 0.5 per cent. 

• Encouraging volume growth of 2.2 per cent despite tough comparative of sustained warm and dry weather last year
  
  o Lower sales in core seasonal categories offset by growth in Home and Toys and benefit from strong sales of fans during the May heatwave week and large screen TV sales in the lead up to the World Cup 
  
  o Continued year on year reduction in average selling price, with mix shift towards lower ticket items and protection of our strong value position against sustained market pricing pressure
  
  
• Dedicated Argos management team delivering transformation plan
  
  o Extended Supplier Direct Fulfilled range; over 5,000 new products added in Q1 with total of 26,000 products now live. On track to launch Marketplace later this financial year o Further strengthening digital proposition with Argos app participation now at around 30 per cent of digital sales
  
  o Productivity improvements through introduction of AI-led stock forecasting and route planning  

Source : Sainsbury's 

Images and charts : Sainsbury's

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.