Sainsbury’s has lifted the lower end of its profit guidance after a half year of rising sales and growing volumes, as more households turned to the supermarket for their weekly shop. The retailer reported grocery sales of £13.2 billion, up 2.9%, while underlying operating profit from continuing operations rose 3.6% to £525 million. Chief executive Simon Roberts said customers were increasingly choosing Sainsbury’s for trusted value, and pointed to strong progress on the plan to sharpen the business around food.

More households choose the grocer for the weekly shop

Food volume growth ran ahead of the market, with further gains in market share and a growing share of main shop customers. Sainsbury’s has strengthened its value position against key competitors, keeping price increases behind the wider market through Nectar Prices and its price match commitment on the products customers buy most often. The approach has encouraged larger baskets as shoppers consolidate their spending into fewer trips. Investment in availability and service has supported the momentum, with more stores carrying expanded ranges.

The grocer’s loyalty scheme continues to sit at the centre of the offer, rewarding regular shoppers with lower prices on everyday favourites. Value leadership has not come at the expense of quality, with the business reporting higher customer satisfaction than two years earlier. Colleague engagement has also risen, a combination management credits with more consistent service across the estate.

Sainsbury’s profit guidance moves higher

Underlying profit before tax rose 5.2% to £366 million, and the group raised the lower end of its guidance range for underlying operating profit from continuing operations. It now expects between £1025 million and £1065 million for the full year, alongside free cash flow of more than £500 million. The first half generated £333 million of free cash flow, while the business completed £200 million of its £300 million share buyback with the remainder due in the second half. An interim dividend of 4.1 pence per share was maintained in line with prior practice.

The upgraded outlook reflects a deliberate balance between investment in the customer offer and steady cost savings, with the group on course to deliver £1 billion of savings across its three-year plan. Return on capital employed improved by 20 basis points, underlining the discipline behind the growth. Strong cash generation has allowed the business to reward shareholders while continuing to invest in value, quality and innovation.

Innovation drives the food offer

Sales of the premium Taste the Difference range grew by more than 6%, and the restaurant-quality Discovery line is set to expand to 200 products. The Full on Fibre range has made healthier choices easier and more affordable, building on the grocer’s push to combine nutrition with value. Seasonal ranges are arriving in stores as the festive period approaches, giving customers early reasons to plan their celebrations.

Long-term relationships with British farmers and suppliers support the offer, giving producers predictable returns and the confidence to invest while keeping prices competitive for customers. The sourcing model has become a point of difference as shoppers pay closer attention to provenance and quality. New product development continues at pace, with hundreds of lines refreshed across the year.

A simpler, sharper business ahead

The agreed sale of Argos to Swift Partners is expected to complete by the end of February 2027, creating a simpler business centred on food. The separation allows both companies to pursue their own strategies, with Argos continuing its transformation under new ownership. Roberts said the business is looking forward to helping customers enjoy a special Christmas, with great value and exciting new food across the ranges.

The raised guidance signals confidence that the momentum of the first half can be sustained through a competitive second half. With growing volumes, rising profits and a stronger balance sheet, Sainsbury’s enters the festive season in a position of genuine strength.