Sainsbury’s is celebrating its sixth consecutive Christmas market share gain, with strong grocery sales driven by a robust value proposition and the success of its premium ranges.
For the 16 weeks to 3 January 2026, total retail sales excluding fuel grew 3.9%, with grocery up 5.4%. General merchandise and clothing declined slightly, while Argos sales fell 1% amid challenging market conditions. Online grocery sales surged 14%, supported by strong OnDemand growth and improved availability.
“More customers switched to Sainsbury’s, trusting us for both great value essentials and premium Taste the Difference products in their big Christmas shop and we were the only major grocer to grow items in the basket,” said chief executive Simon Roberts. Fresh food sales rose 8%, while Taste the Difference became the fastest-growing premium own-label brand in the market, with fresh ranges up 15% year-on-year.
Strong value proposition
Sainsbury’s Q3 trading statement highlights a strong value proposition as a key driver of its success. Aldi Price Match, Nectar Prices, and personalised Your Nectar Prices drove loyalty and bigger basket sizes. Meanwhile, record growth in its Taste the Difference fresh ranges reinforced its position as a premium grocer. Its multichannel strategy succeeded with increased online grocery orders and basket sizes, while convenience stores achieved record performance during the festive period. Despite a weak market, its clothing line Tu outperformed with strong Christmas category sales, including record pyjama sales.
Sainsbury’s results reflect a wider trend in UK grocery: consumers spent more on food and drink during Christmas 2025, focusing on value and quality. All major supermarkets except Asda saw higher sales, even though spending on general merchandise and expensive items dropped. This highlights the resilience of the grocery sector despite challenging economic conditions, and illustrates the significance of premium ranges and loyalty-driven value propositions in attracting spend.
Moving forward
Sainsbury’s now expects to deliver retail underlying operating profit of more than £1 billion and has raised its retail free cash flow guidance to over £550 million. The retailer plans to return over £800 million to shareholders this financial year through dividends and share buybacks. “We have real confidence in our momentum as we head into the final quarter and remain focused on helping our customers get great value for money and delivering for all our stakeholders,” Roberts said.
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