Sainsbury’s has reported a robust start to its 2025 financial year, achieving its highest UK grocery market share in nearly a decade. For the 16 weeks ending 21 June 2025, the supermarket recorded a 4.9% increase in total retail sales and a 5% rise in grocery sales, marking its third consecutive year of market share growth. Food volumes grew faster than those of its competitors, underscoring the retailer’s strong performance in a competitive market. Chief executive Simon Roberts attributed the gains to the supermarket’s “strongest ever customer offer,” highlighting price investments and an expanded Aldi Price Match scheme as key drivers.

The Aldi Price Match initiative, a cornerstone of Sainsbury’s pricing strategy, now covers approximately 800 everyday products, including staples such as milk, bread, butter, and pasta. This expansion has extended beyond supermarket stores into more than 800 convenience outlets, further strengthening Sainsbury’s value proposition ahead of peak seasonal trading. Roberts noted that this commitment has helped improve the chain’s Value for Money customer satisfaction scores to their highest levels ever. The company claims these pricing measures have enhanced its competitive position against rivals like Tesco and Lidl, with both grocers having recently adjusted their own price match campaigns.

Notably, Sainsbury’s premium “Taste the Difference” range saw a 20% surge in sales, buoyed by new deli and picnic products tailored for summer occasions. This growth in premium offerings reflects a balanced strategy that combines competitive pricing with product innovation to meet diverse customer preferences.

In addition to strong in-store performance, Sainsbury’s convenience stores experienced a 6% increase in sales, aided by improved product availability and revamped food-to-go options. Online grocery shopping also grew by 6%, driven by increased customer adoption and larger basket sizes, signalling the importance of digital channels in the retailer’s multi-format strategy.

Looking ahead, Sainsbury’s reaffirmed its full-year financial outlook, anticipating around £1 billion in underlying retail operating profit and over £500 million in retail free cash flow. The company expects profit delivery to be weighted toward the second half of the year, consistent with seasonal trading rhythms, and it remains focused on achieving £1 billion in cost savings by March 2027. A notable upcoming development is the planned launch of “Pollen,” a new retail media platform under the Nectar360 banner that will enable partner brands to run personalised campaigns across Sainsbury’s retail ecosystem.

Sainsbury’s strong performance continues to track a wider market trend, as UK grocery inflation remains elevated, with prices rising sharply over recent months. During the 2024 Christmas period, for example, the retailer achieved its highest market share since December 2019, buoyed by competitive pricing against broader market inflation exceeding 3.5%. However, there have been some fluctuations earlier in the year; in February 2025, Sainsbury’s scaled back its Aldi Price Match scheme somewhat, reducing the number of price-matched items from a peak of 681 to 606. Many of the cut items were own-label products, prompting some price rises above Aldi’s levels. This move mirrored similar adjustments by Tesco and may signal a cautious recalibration of price match strategies as retailers balance competitive pricing with margin pressures.

Despite these strategic tweaks, Sainsbury’s momentum remains strong. Simon Roberts emphasised the company’s ongoing growth ahead of the broader market for three consecutive years and its preparedness to deliver strong performance throughout the summer and beyond. The combination of value-driven pricing, convenience expansion, premium product growth, and digital innovation positions Sainsbury’s well in the dynamic UK grocery sector.