Sainsbury’s lifts profit outlook as grocery sales rise

The retailer said higher grocery volumes and loyalty pricing helped lift revenue, while fuel sales surged amid higher oil prices.

By Felo News Desk · Published Thu, 22 Oct 2026 10:09:24 GMT

Sainsbury’s said its half‑year revenue rose 4.1% to £16.2 billion and grocery sales grew 2.9% to £13.2 billion, prompting an upgraded profit outlook.

What happened

For the 28‑week period to 12 September, total revenues increased 4.1% year‑on‑year, with continuing‑operations sales (excluding fuel) up 2.6%. Grocery sales rose 2.9% to £13.2 billion, while general merchandise fell 3.4% and fuel sales jumped 17.8% due to higher global oil prices after the Iran war. Underlying operating profit was £525 million, up 3.6%.

Underlying operating profit guidance for the full year is now £1.025 billion‑£1.065 billion, revised from a previous range of £975 million‑£1.075 billion.
The company expects the range to be adjusted to £965 million‑£1.065 billion after accounting for the proposed Argos sale.
In July, Sainsbury’s agreed to sell Argos for at least £120 million to Swift Partners, a vehicle set up by retail experts including former Co‑operative Group chief Richard Pennycook.

What the reports add

Both the Standard and the Independent noted that the grocery growth was driven by “greater volumes of products” as price inflation slowed, and highlighted pricing initiatives such as the Nectar loyalty card and an Aldi price‑match scheme.

The Standard reported the underlying operating profit increase of 3.6% and the revised full‑year profit guidance figures.
The Independent echoed the same profit‑guidance revision and added that the Argos sale would reshape the business towards a simpler, food‑focused model.

What was said

“Many households are finding things tough at the moment,”

Simon Roberts, chief executive of Sainsbury’s, told shareholders, as quoted by both outlets.

“As we progress the sale of Argos and further sharpen our focus on food, we are building a simpler, more focused Sainsbury’s. With great value, outstanding quality and exciting new food across our ranges, we’re looking forward to helping customers enjoy a really special Christmas.”

Roberts made the comment in the same shareholder briefing cited by the Standard and the Independent.

How it came about

Sainsbury’s has been using loyalty‑based pricing measures, including Nectar Prices and an Aldi price‑match comparison, to boost footfall. The latest figures follow a period of slowing inflation and come after similar profit‑outlook upgrades in the sector, such as Tesco’s first‑half sales rise reported on 10 October.

Key facts

Sainsbury’s total revenue rose 4.1% to £16.2 billion for the 28 weeks to 12 September. (standard.co.uk)
Grocery sales increased 2.9% to £13.2 billion in the same period. (standard.co.uk)
Underlying operating profit grew 3.6% to £525 million for the half‑year. (standard.co.uk)
Fuel sales jumped 17.8% due to higher oil prices after the Iran war. (standard.co.uk)
Sainsbury’s now targets full‑year underlying operating profit of £1.025‑£1.065 billion. (standard.co.uk)