J Sainsbury PLC

The London stock market closed lower on Friday but still managed to advance both for the week and the month, with the FTSE 100 index ending at 10,868.05 points, down 29.22 points or 0.27 percent, after retreating from record highs amid support from strong corporate earnings. NatWest shares jumped 3.2 percent after reporting first-half pre-tax operating profit of 4.3 billion pounds, beating expectations, and Sainsbury’s shares edged up 1 percent after agreeing to sell Argos for at least 120 million pounds. Meanwhile, IAG shares fell 1.5 percent after cutting its 2026 capacity guidance. Energy stocks rose 1.9 percent as Brent crude oil prices surged above 90 US dollars per barrel, pushing the sector to a gain of more than 15 percent in July. The Bank of England voted to hold interest rates, but three policymakers dissented, more than the market had expected, amid concerns over the economic impact of the conflict with Iran.

Supermarket bosses are calling for Andy Burnham to set legally binding targets to increase the proportion of fruit and vegetables grown in Britain by 2040. The chief executives of Tesco, Waitrose, Sainsbury's, Aldi and the Co-op have written to the Prime Minister warning that wildfires and extreme weather are putting Britain's food supplies at risk. At least half of the nation's imported fruit and vegetables currently come from countries facing extreme water scarcity, the bosses warned. The letter, drafted by the Food Foundation and signed by more than 100 organisations including Danone and Greencore, urges the introduction of a good food bill that would require local authorities to plan for continued food supplies during extreme weather and mandate consideration of food security across government decisions. It also calls for legally binding targets on reducing childhood obesity and increasing children's fruit and vegetable consumption.

Sainsbury's first-quarter sales increased by 3.1% to £8.04 billion in the 16 weeks to 20 June 2026, with the UK supermarket group gaining market share and outperforming the broader grocery sector. Grocery sales climbed by 3.6% to £7.6 billion, while general merchandise and clothing dropped by 3.7% to £438 million. Total retail sales excluding fuel grew by 2.7% to £9.15 billion, with like-for-like sales excluding fuel up by 2.1%. Fresh food sales increased by 5%, with the retailer reporting record-breaking sales in berries and burgers during the May heatwave and its best-ever Easter lamb sales. Groceries Online sales rose by 12.5%. Tu Clothing sales declined by 2.1%, which Sainsbury's said outperformed a soft clothing market, while general merchandise sales fell by 6.3%, reflecting an ongoing programme to shift space allocation away from non-food towards food. At Argos, sales dropped by 0.5%, as volume growth of 2.2% was offset by lower average selling prices amid subdued consumer spending. The retailer added more than 5,000 new products to its Supplier Direct Fulfilled range during the quarter, bringing the total to 26,000 live products, and said it remains on track to launch a Marketplace later in the financial year. Sainsbury's said it remains on track to deliver £1 billion of cost savings over the three years to March 2027. The retailer said facial recognition technology is now live in more than 55 stores, with up to 150 further stores planned before Christmas. Sainsbury CEO Simon Roberts said customers are looking for value now more than ever, and the company is consistently delivering outstanding quality at great value, driving an encouraging start to the year with continued volume growth and market outperformance. For the 2026/27 financial year, Sainsbury's continues to expect total underlying operating profit of between £975 million and £1.07 billion, and retail free cash flow of more than £500 million, while noting uncertainty over the impact of the conflict in the Middle East on its customers and business.

Sainsbury’s chief executive Simon Roberts said there is inflationary pressure still to come through the supply chain, though it is not as significant as some had expected. He noted that grocery inflation at Sainsbury’s was lower in the most recent quarter compared to the previous period. Total retail sales excluding fuel grew 2.7% to £9.15 billion in the 16 weeks to June 20, with grocery sales up 3.6%, while general merchandise and clothing sales fell 3.7% and Argos sales dipped 0.5%. Roberts said customers are looking for value more than ever, and the company has been investing in price match and discount schemes. Sainsbury’s shares rose 1.9% in early trading.

Asda has posted pre-tax losses of £989m for the latest financial year, up from £599m a year earlier, as sales fell 3.4% to £25.9bn. The results include £284m in losses tied to Project Future, the programme to separate its IT systems from former owner Walmart, and a £384m impairment from property revaluation. Executive chairman Allan Leighton, appointed in November 2024, has launched a price war that contributed to a 33.3% drop in earnings before tax to £761m, but the supermarket’s market share has slipped to 11.5% from 12.3% a year ago. Asda, owned by TDR Capital and the Issa brothers since 2021, said the reported loss does not reflect underlying financial strength and highlighted £1.3bn in cash and £2.1bn in total liquidity.