Overview

• Sainsbury’s reported a 7.2% increase in retail underlying operating profit to £1.03 billion for FY24/25, alongside a 4.2% rise in grocery sales to £26.6 billion.
• The retailer forecasts flat retail underlying operating profit of around £1 billion for FY25/26, citing heightened price competition and rising costs, including an additional £140 million in national insurance expenses.
• A £1 billion price investment helped Sainsbury’s achieve its highest grocery market share gain in over a decade, positioning it strongly against competitors like Tesco, Asda, Aldi, and Lidl.
• Cost-saving measures implemented earlier in the year included the closure of all in-store cafés, 3,000 job cuts, and warehouse reductions, contributing to £350 million in annual savings.
• Sainsbury’s plans to open about 40 new stores this year, marking its largest store expansion in over a decade, as part of a strategy to sustain growth and strengthen its competitive position.