Increased spring sales recorded at Sainsbury's during sunny season
Sainsbury's has announced impressive sales growth in the last 16 weeks (to June 21, 2025), surpassing the wider market and many competitors, particularly in fresh food and its premium "Taste the Difference" range.
Key points regarding sales growth and performance:
- **Overall sales growth:** Total retail sales (excluding fuel) grew by **4.9%**, compared to 2.6% growth a year ago. Like-for-like sales (excluding fuel) rose 4.7%, significantly ahead of last year's 2.9%. Including fuel, total retail sales grew 2.4%, slightly above the 2.3% a year earlier.
- **Volume performance:** Sainsbury's volume growth was **0.9% year-on-year**, outperforming Tesco’s 0.7% increase and contrasting with volume declines of 5.2% and 7.8% at Morrisons and Asda respectively. This impressive performance is noteworthy given the challenging competitive landscape.
- **Fresh food and premium ranges:** Sainsbury's has highlighted growth in fresh food and quality innovation, with the "Taste the Difference" premium range contributing notably to sales momentum. Although precise sales figures for these categories are not detailed in the latest statements, the company’s strategic focus and reported premium brand growth indicate strong performance in these areas.
- **Comparative market context:** The UK grocery market remains competitive, but Sainsbury's outperformance in both volume and value sales highlights effective execution of its strategy around fresh food appeal, value positioning, and product innovation.
In addition to these achievements, Sainsbury's has been expanding its use of self-service checkouts and aims for £1bn cost savings by 2027. However, the company has not mentioned any specific increase or decrease in sales related to these changes.
The closure of in-store cafes by Sainsbury's in January affected 3,000 jobs, but the impact on overall sales is not clear from the provided information.
Competition in the UK's grocery market has been growing due to lower prices from Asda. Aldi has also made the biggest Price Match commitment in the market, covering around 800 everyday essentials.
Simon Roberts, the chief executive of Sainsbury's, stated that the company has great momentum and is well-positioned for a strong summer performance. Record customer use of Sainsbury's Smartshop tech was recorded in the latest quarter, further indicating the company's successful digital strategy.
Sainsbury's has argued that the additional tax will lead to inflation in the UK grocery market, but no further details were provided.
Non-food sales at Sainsbury's grew by 4.2% during the same period, and convenience sales increased by 6%. These figures suggest a broad-based growth strategy, with success not only in fresh food but also in non-food and convenience offerings.
Overall, Sainsbury's has demonstrated robust sales growth, outpacing the market and many competitors. The company's focus on fresh food, premium ranges, and value positioning has paid off, resulting in a strong performance in the first half of 2025.
- The impressive sales growth of Sainsbury's in the last 16 weeks, as noted in June 2025, exceeded expectations across the wider market and many competitors, notably in the fresh food category and the "Taste the Difference" premium range.
- Despite intense competition in the UK's grocery industry, Sainsbury's managed to secure a significant increase in both volume and value sales, showcasing the effectiveness of its strategy revolving around fresh food appeal, value positioning, and product innovation.
- The company's expansion into technology, such as the enhanced use of self-service checkouts and mobile shopping tech, has contributed to a successful digital strategy, as indicated by a record customer use of Sainsbury's Smartshop during the latest quarter.
- In addition to robust performance in traditional retail sectors, Sainsbury's has also seen growth in non-food sales and convenience sales, suggesting a broader growth strategy that goes beyond fresh food offerings.
