9 January 2026
If you are covering Sainsbury’s Q3 trading statement, please see the following comment from Lucy Rumbold, equity research analyst at Quilter Cheviot:
“Sainsbury’s has shared a similar fate to Tesco, with its shares opening negatively this morning. While it posted a robust Q3 and Christmas trading update that showed market share gains, there was a disappointing lack of profit upgrade. Asda has also pledged once again to be cheaper than Tesco and Sainsbury’s, which is likely contributing to the downward pressure on its share price.
“Sainsbury’s grocery sales were strong over Q3, up 5.4 % over the period, which was predominantly driven by strength in fresh food. However, general merchandise and Argos experienced weak performance, a trend that has been observed across the sector. Both were down 1% over the quarter, weighing on overall group performance and bringing total like for like sales for the group to 3.4%.
“Groceries continue to be the driver of performance for the group, buoyed by its Nectar savings offering which resonates well with consumers, as well as its premium ‘taste the difference’ range which saw sales rise by 15%. Much like Tesco, Sainsbury’s stands to benefit from the consumer shift towards trading down eating out for eating in. Additionally, fresh produce continues to outperform as consumers become more health conscious than ever, and more opt to cook from scratch.
“Management has attributed the weakness in Argos to weak consumer confidence, as well as many mark downs and generally lower pricing to stay competitive. This has been observed across the market but ultimately puts a squeeze on margins.”
