British supermarket chain Sainsbury's has reported a 4.7% increase in like-for-like sales, excluding fuel, for the first quarter (Q1) of the fiscal year 2025/26 (FY25/26).

Grocery sales rose 5%, total retail (excluding fuel) by 4.9% and general merchandise and clothing 4.2%.

Argos saw a 4.4% increase in sales, ahead of a subdued and intensely competitive general merchandise market facing deflationary pressures, aided by favourable warm and dry weather conditions.

Sainsbury's has delivered wjat it describes as the “highest market share since 2016,” gaining share for the third consecutive year.

J Sainsbury chief executive Simon Roberts stated: “We know how important it is that we provide consistently great value and we have built further on our strong competitive position, improving our prices against all key competitors year-on-year.

“We’re now offering even more opportunities for customers to save on the items they buy most often through the biggest Aldi Price Match commitment in the market, covering around 800 everyday essentials. As a result, our value for money customer satisfaction scores are the highest they have ever been.”

The company continues to expect to deliver a retail underlying operating profit of £1bn ($1.3bn) and retail free cash flow of more than £500m in FY25/26.

The profit delivery will be supported by growth in Nectar profit contribution and cost-saving delivery, with a greater weight towards the second half of the year compared to the previous year.

Sainsbury's stated: "Our value proposition is stronger than ever and we've improved our price position against all key competitors year-on-year. Value for money customer satisfaction scores are the highest they have ever been".

Sainsbury's has also seen an 18% increase in sales of its Taste the Difference range and launched 450 new products in the first quarter, with more than 250 of these in Taste the Difference.

Roberts added: “We have great momentum, growing faster than the market for three consecutive years and we are well set to deliver another strong performance over the summer. Boosted by a sunny spring, we’re already off to a great start with Taste the Difference fresh food sales up 20% as customers enjoy our delicious new deli and picnic ranges, which are perfect for sharing with friends and family.”

Convenience sales grew 6%, with high customer satisfaction scores reflecting a positive response to the Aldi Price Match commitment.

Groceries Online sales also increased by 6%, with growth in both orders and basket size.

The company said it is progressing with its 'More for More' plan, opening seven new convenience stores and two new supermarkets, both performing ahead of expectations.

Tu Clothing sales grew by 8%, with womenswear up by 13%. Sainsbury's is investing in reducing fulfilment costs, tighter stock management, and optimising the store operating model to support its customer proposition.

Sainsbury's added: “We are confident in delivering £1bn of cost savings by March 2027, investing in high-returning activity across the customer proposition, productivity, operations and technology stability and resilience.”

Sainsbury’s has reported a significant rise in its after-tax profit to £242m ($320m) for the fiscal year 2024/25 (FY24/25) – a 76.6% increase from the previous year’s £137m.