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Sainsbury’s has forecast flat retail profits of \u00a31bn for its forthcoming year, down slightly from the \u00a31.036bn it pulled in during the year to 1 March, as chief executive Simon Roberts vowed to defend the supermarket\u2019s \u201cstrong competitive position\u201d amid a possible price war in the sector.<\/p>\n
\u201cWe’re in the strongest place we’ve ever been, and we intend to stay there,\u201d says the boss of the UK’s second-largest grocery chain.<\/p>\n
\u201cWe’ve spent the last four years resetting our pricing and we’ve learned a huge amount as we’ve done that. The one billion guidance gives us all the capacity we need to make sure that, above all else, we can sustain the strength of our competitive position,” he adds.<\/p>\n
Roberts’ comments come after Tesco wiped \u00a3400m off its profit expectations last week to give it more wriggle room to cut prices after Asda signalled the start of a potential price war in March.<\/p>\n
\u201cThis market remains highly competitive, but as we look ahead, we really believe that our winning combination of great value, quality products and the brilliant customer service that our colleagues deliver day in day out […] will keep delivering for us,\u201d notes Roberts.<\/p>\n
But what exactly has the Sainsbury’s chief executive feeling so confident that the chain can hold its own in the endlessly competitive UK grocery sector?<\/p>\n
Better prices<\/strong><\/h3>\n![\"Sainsbury's\"](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2025\/04\/Taste-the-Difference_Sainsburys-e1744888485253.jpg\")
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The grocery giant\u2019s \u00a31bn investment over the last four years on delivering a stronger price proposition has Roberts feeling positive entering its new financial year.<\/p>\n
When asked about the burgeoning price war across UK grocery retail, Roberts says: \u201cWe’ve not done anything different in recent weeks in response to the noise that’s out there. We’re just seeing our position being really strong against all our competitors,\u201d he says.<\/p>\n
Indeed, Sainsbury’s is choosing to hold firm on its pricing for the time being – a sharp contrast to its biggest rival Tesco, which unveiled another set of price cuts at the start of the month in response to Asda adding another 1,500 products to its Rollback proposition weeks earlier.<\/p>\n
Roberts explains the business has been focused on \u201cdelivering for our customers every day\u201d through \u201cthe continued strength\u201d of Nectar prices and its Aldi price match scheme, which launched in Sainsbury\u2019s Local stores last November. In February, Sainsbury’s followed Tesco in rolling back the number of lines included in its Aldi price match range.<\/p>\n
The chief executive notes that Nectar Prices has been a \u201creally powerful engine for our growth, playing a key role in winning many customers, particularly those big trolley shops\u201d.<\/p>\n
The exclusive pricing for Sainsbury\u2019s loyalty members is now available on over 9,000 products, with users also able to get additional discount through Your Nectar Prices.<\/p>\n
Bigger store footprint<\/strong><\/h3>\nDespite increasing market pressures, Sainsbury\u2019s is ploughing ahead with its store opening plans in the forthcoming year in what Roberts described as its \u201cbiggest opening in a decade\u201d.<\/p>\n
The grocery giant plans to open 15 new supermarkets across the country, many of which will be housed in the former Homebase units it acquired last year.<\/p>\n
This will be joined by 20 new Sainsbury\u2019s Local stores \u2013 which the grocer says will bring over 700,000 more people within a ten-minute drive of one of its stores.<\/p>\n
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\u201cWe’re really excited about the fact that we’re making our biggest growth in new stores in more than a decade. It just underlines the confidence we have in the strength of the Sainsbury’s food offer, both our value, our availability, our innovation and our quality,\u201d says Roberts.<\/p>\n
The supermarket\u2019s brick-and-mortar plans are paired with the expansion of its rapid delivery channel.<\/p>\n
Sainsbury\u2019s reported sales via its on-demand channel were up 80% in the year and the service provided by the likes of Deliveroo and UberEats is available in over 1,200 locations.<\/p>\n
\u201cIt’s an important part of making sure however the customers want to shop with us, they can access the range and in the convenience they want,\u201d Roberts explains.<\/p>\n
First choice for food<\/strong><\/h3>\nImproving Sainsbury\u2019s food offer and availability is at the heart of Roberts\u2019 \u2018Next Level\u2019 strategy and the retailer’s investments over the past 12 months have been coming to fruition.<\/p>\n
The business has spent the year rebalancing the space in its supermarkets to provide shoppers with a larger range of food products.<\/p>\n
The retailer added an additional 90,000sq ft of food space last year and plans to match this in the forthcoming year.<\/p>\n
Part of the space will materialise from the closure of its patisserie, hot food and pizza counters this summer, as well as the remaining Sainsbury\u2019s Caf\u00e9s.<\/p>\n
This has helped contribute to a 4.5% lift in grocery sales to\u00a0\u00a324.7bn during the year as well as a 15% increase in the grocer\u2019s premium Taste the Difference line and a \u201cparticularly strong performance\u201d in its Fresh categories.<\/p>\n
Sainsbury\u2019s launched more than 1,300 new products, 600 of which were Taste the Difference products.<\/p>\n
\u201cAs we come into this 25th birthday year, we’re going to be really getting behind Taste the Difference with a terrific range of new dishes for Summer and we plan to achieve two billion pounds of sales in TTD this year,\u201d notes Roberts.<\/p>\n
Sainsbury\u2019s Local stores have also seen expanded ranges and Aldi price matching introduced, which Roberts says customers have “really responded to”.<\/p>\n
Strengthening Argos<\/strong><\/h3>\nSainsbury\u2019s is also seeing some green shoots with its new strategy for Argos, with the retailer returning to sales growth in the final quarter of the year.<\/p>\n
\u201cWe’re very focused in Argos at the moment in making sure customers find more and more reasons to shop with us,\u201d Roberts explains. ![\"Argos](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2021\/03\/Argos_home-DIY_shopfront_ST.jpg\")
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During the year, the retailer added thousands of new products to extend its assortment and strengthened relationships with suppliers to help drive online sales.<\/p>\n
Roberts says he’s \u201cencouraged\u201d by the 1.9% lift in final quarter sales, which helped to soften the 2.7% decline in full-year sales of \u00a34.91bn.<\/p>\n
Speaking on whether the fallout of Trump\u2019s tariffs could lead to higher prices, the chief executive says he\u2019s \u201cwatching developments closely\u201d as the supermarket looks to absorb any price rises.<\/p>\n
\u201cOver the past five years, every single year we’ve had substantial supply chain issues to navigate and clearly this year’s going to be no different,\u201d says Roberts, adding the team will be working closely with suppliers to limit disruption.<\/p>\n
Pressure for retailers is coming from all angles this year – and as competition in the rest of the grocery sector heats up, Sainsbury’s is holding firm that its ‘Next Level’ strategy will continue to deliver both efficiencies across the business and provide it with a compelling value offer.<\/p>\n
<\/p>\nDespite increasing market pressures, Sainsbury\u2019s is ploughing ahead with its store opening plans in the forthcoming year in what Roberts described as its \u201cbiggest opening in a decade\u201d.<\/p>\n
The grocery giant plans to open 15 new supermarkets across the country, many of which will be housed in the former Homebase units it acquired last year.<\/p>\n
This will be joined by 20 new Sainsbury\u2019s Local stores \u2013 which the grocer says will bring over 700,000 more people within a ten-minute drive of one of its stores.<\/p>\n
<\/p>\n
\u201cWe’re really excited about the fact that we’re making our biggest growth in new stores in more than a decade. It just underlines the confidence we have in the strength of the Sainsbury’s food offer, both our value, our availability, our innovation and our quality,\u201d says Roberts.<\/p>\n
The supermarket\u2019s brick-and-mortar plans are paired with the expansion of its rapid delivery channel.<\/p>\n
Sainsbury\u2019s reported sales via its on-demand channel were up 80% in the year and the service provided by the likes of Deliveroo and UberEats is available in over 1,200 locations.<\/p>\n
\u201cIt’s an important part of making sure however the customers want to shop with us, they can access the range and in the convenience they want,\u201d Roberts explains.<\/p>\n
First choice for food<\/strong><\/h3>\nImproving Sainsbury\u2019s food offer and availability is at the heart of Roberts\u2019 \u2018Next Level\u2019 strategy and the retailer’s investments over the past 12 months have been coming to fruition.<\/p>\n
The business has spent the year rebalancing the space in its supermarkets to provide shoppers with a larger range of food products.<\/p>\n
The retailer added an additional 90,000sq ft of food space last year and plans to match this in the forthcoming year.<\/p>\n
Part of the space will materialise from the closure of its patisserie, hot food and pizza counters this summer, as well as the remaining Sainsbury\u2019s Caf\u00e9s.<\/p>\n
This has helped contribute to a 4.5% lift in grocery sales to\u00a0\u00a324.7bn during the year as well as a 15% increase in the grocer\u2019s premium Taste the Difference line and a \u201cparticularly strong performance\u201d in its Fresh categories.<\/p>\n
Sainsbury\u2019s launched more than 1,300 new products, 600 of which were Taste the Difference products.<\/p>\n
\u201cAs we come into this 25th birthday year, we’re going to be really getting behind Taste the Difference with a terrific range of new dishes for Summer and we plan to achieve two billion pounds of sales in TTD this year,\u201d notes Roberts.<\/p>\n
Sainsbury\u2019s Local stores have also seen expanded ranges and Aldi price matching introduced, which Roberts says customers have “really responded to”.<\/p>\n
Strengthening Argos<\/strong><\/h3>\nSainsbury\u2019s is also seeing some green shoots with its new strategy for Argos, with the retailer returning to sales growth in the final quarter of the year.<\/p>\n
\u201cWe’re very focused in Argos at the moment in making sure customers find more and more reasons to shop with us,\u201d Roberts explains. <\/p>\n
During the year, the retailer added thousands of new products to extend its assortment and strengthened relationships with suppliers to help drive online sales.<\/p>\n
Roberts says he’s \u201cencouraged\u201d by the 1.9% lift in final quarter sales, which helped to soften the 2.7% decline in full-year sales of \u00a34.91bn.<\/p>\n
Speaking on whether the fallout of Trump\u2019s tariffs could lead to higher prices, the chief executive says he\u2019s \u201cwatching developments closely\u201d as the supermarket looks to absorb any price rises.<\/p>\n
\u201cOver the past five years, every single year we’ve had substantial supply chain issues to navigate and clearly this year’s going to be no different,\u201d says Roberts, adding the team will be working closely with suppliers to limit disruption.<\/p>\n
Pressure for retailers is coming from all angles this year – and as competition in the rest of the grocery sector heats up, Sainsbury’s is holding firm that its ‘Next Level’ strategy will continue to deliver both efficiencies across the business and provide it with a compelling value offer.<\/p>\n
Sainsbury\u2019s is also seeing some green shoots with its new strategy for Argos, with the retailer returning to sales growth in the final quarter of the year.<\/p>\n
\u201cWe’re very focused in Argos at the moment in making sure customers find more and more reasons to shop with us,\u201d Roberts explains. <\/p>\n
During the year, the retailer added thousands of new products to extend its assortment and strengthened relationships with suppliers to help drive online sales.<\/p>\n
Roberts says he’s \u201cencouraged\u201d by the 1.9% lift in final quarter sales, which helped to soften the 2.7% decline in full-year sales of \u00a34.91bn.<\/p>\n
Speaking on whether the fallout of Trump\u2019s tariffs could lead to higher prices, the chief executive says he\u2019s \u201cwatching developments closely\u201d as the supermarket looks to absorb any price rises.<\/p>\n
\u201cOver the past five years, every single year we’ve had substantial supply chain issues to navigate and clearly this year’s going to be no different,\u201d says Roberts, adding the team will be working closely with suppliers to limit disruption.<\/p>\n
Pressure for retailers is coming from all angles this year – and as competition in the rest of the grocery sector heats up, Sainsbury’s is holding firm that its ‘Next Level’ strategy will continue to deliver both efficiencies across the business and provide it with a compelling value offer.<\/p>\n