J Sainsbury plc (LSE:SBRY) reported a strong third-quarter trading performance for the 13 weeks to 3 January 2026, supported by continued grocery-led growth and another year of Christmas market share gains.
Total retail sales excluding fuel rose 3.9% year on year, with like-for-like sales up 3.4%. Grocery sales increased 5.4%, marking a sixth consecutive year of Christmas market share growth, while sales in general merchandise and at Argos declined modestly over the period.
The retailer said demand was driven by strong fresh food sales, robust performance from its premium Taste the Difference range, and record trading in convenience stores. Online grocery sales grew 14%, supported by the group’s Nectar-linked value proposition, which helped attract more customers and lift average basket sizes during the peak festive season.
Management said continued investment in value, quality, and service under its Next Level strategy is sustaining competitive momentum. As a result, Sainsbury’s reaffirmed guidance for retail underlying operating profit of more than £1 billion for the year and upgraded free cash flow expectations to above £550 million. The group also reiterated plans to return more than £800 million to shareholders.
Progress was also reported across strategic initiatives, including growth in the Nectar360 retail media business and ongoing transformation at Argos. Disciplined stock management and continued expansion of food retail space are expected to help the group consolidate share in a subdued general merchandise market while improving returns for investors and brand partners.
Overall, Sainsbury’s outlook remains supported by solid operating performance and shareholder-focused actions. However, valuation levels and mixed technical indicators suggest some caution, with regulatory cost pressures and broader market challenges continuing to feature in the investment backdrop.
More about J Sainsbury plc
J Sainsbury plc is one of the UK’s largest food-led retailers, operating Sainsbury’s supermarkets and convenience stores alongside Argos and the Tu clothing brand. The group serves value-conscious consumers with a broad grocery offering, premium own-label ranges such as Taste the Difference, and a growing online grocery business, underpinned by its Nectar loyalty scheme and retail media platform.
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