Sainsbury’s Gains Christmas Market Share Again as Grocery Strength Lifts Profit and Cash Outlook

The latest update is out from J Sainsbury plc ( (GB:SBRY) ).

J Sainsbury reported a robust third quarter to 3 January 2026, with total retail sales excluding fuel up 3.9% and like-for-like sales up 3.4%, driven by 5.4% growth in grocery and a sixth consecutive year of Christmas market share gains, even as general merchandise and Argos sales declined modestly. Strong demand for fresh food and the premium Taste the Difference range, a record performance in convenience stores and 14% growth in online grocery, supported by its Nectar-linked value proposition, helped attract more customers and increase basket sizes over the crucial festive period. Management said investments in value, quality and service through its Next Level strategy are sustaining competitive momentum, allowing the retailer to reaffirm guidance for retail underlying operating profit of more than £1bn and raise free cash flow guidance to over £550m, while maintaining plans to return over £800m to shareholders. Progress in its Nectar360 retail media business and the ongoing Argos transformation, together with disciplined stock control and continued expansion of food space, are positioning Sainsbury’s to consolidate share in a weak general merchandise market and enhance returns for investors and brand partners.

The most recent analyst rating on (GB:SBRY) stock is a Buy with a £3.60 price target. To see the full list of analyst forecasts on J Sainsbury plc stock, see the GB:SBRY Stock Forecast page.

Spark’s Take on GB:SBRY Stock

According to Spark, TipRanks’ AI Analyst, GB:SBRY is a Outperform.

J Sainsbury plc’s overall stock score reflects solid financial performance and strategic initiatives that enhance shareholder value. However, technical indicators suggest caution, and valuation metrics indicate potential overvaluation. The company’s strong earnings call and active share buyback program are positive factors, but regulatory costs and market challenges remain concerns.

To see Spark’s full report on GB:SBRY stock, click here.

More about J Sainsbury plc

J Sainsbury plc is one of the UK’s largest food-focused retailers, operating Sainsbury’s supermarkets and convenience stores alongside its Argos general merchandise and Tu clothing brands. The group targets value-conscious British consumers with a mix of everyday grocery essentials, premium own-label ranges such as Taste the Difference, a growing online and on-demand grocery offer, and a sizeable presence in general merchandise and clothing, underpinned by its Nectar loyalty and retail media platform.

Average Trading Volume: 7,221,883

Technical Sentiment Signal: Strong Buy

Current Market Cap: £7.42B

For detailed information about SBRY stock, go to TipRanks’ Stock Analysis page.