Sainsbury's raises profit target amid slowing sales and tough consumer climate

Sainsbury's announced an upward revision of its annual profit target, setting the bottom of the range at £1.025 billion and the top at £1.065 billion. Sales momentum has eased, with like-for-like growth slipping to 1.2 percent in the September quarter and grocery growth slowing to 2.2 percent, while general merchandise and clothing saw modest improvements. Simon Roberts, who has led the chain since 2020, said the retailer's strong food offering, particularly the upscale Taste the Difference range, is sustaining growth despite many households feeling financial pressure.

The sale of the Argos business to Swift Partners for £120 million was presented as a step toward a more focused operation. Roberts also noted that the premium Taste the Difference Discovery Range is expanding toward 200 items. The company recently walked away from merger talks with Morrisons, underscoring a cautious approach to consolidation.