Sainsbury’s Tu ‘outperforms’ market thanks to record Christmas pyjama sales

Sainsbury’s emerged from the Christmas trading period with momentum in food, but its latest update laid bare the continued pressure on fashion and general merchandise as UK consumers rein in discretionary spending.

The supermarket chain, which also owns Argos, reported a 5.1% uplift in total grocery sales over the six weeks to 3 January 2026. However, that uptick did not carry across the group’s non-food offer. General merchandise and clothing sales fell 1%, while Argos sales declined 2.2%.

Sainsbury’s pointed to a comparatively resilient performance from Tu Clothing, which it said outperformed the wider clothing market by 10 percentage points during the quarter. The retailer credited improved style and quality perception, stronger availability and standout seasonal categories, including record sales of Christmas pyjamas.

Despite weaker general merchandise conditions, the group reiterated that it remains on track to deliver retail underlying operating profit of more than £1 billion for the full year, alongside retail free cash flow exceeding £550m.

Chief executive Simon Roberts said: "We expected the market to become more competitive with customers spending more carefully, and we invested in balanced choices to offer great value for money, outstanding quality and innovation."

The update comes as competition across UK retail intensifies. The figures follow Tesco’s festive update on Thursday, which showed a 3.3% rise in like-for-like UK and Ireland sales over the six weeks to January 3, which was lower than forecast. Tesco’s chief executive Ken Murphy said on Thursday that competition in the market was "intense" and "relentless" over the festive season, with shoppers increasingly seeking out value.

Shares in Sainsbury’s fell 4% in early trading on Friday as its third-quarter growth also came in lower than expected in the market.