A customer looks at fresh produce inside a Sainsbury’s supermarket in Cobham, Britain, October 2, 2024. REUTERS
LONDON, April 23 (Reuters) – British supermarket group Sainsbury’s warned on Thursday that uncertainty around how the Iran war will affect consumers is clouding its outlook and could drag profits lower this year, echoing concerns voiced by market leader Tesco.
Sainsbury’s said the conflict in the Middle East will impact both its customers and its business.
“The duration and extent of these impacts is very uncertain and this is reflected in our profit guidance,” it said, forecasting total underlying operating profit of between 975 million pounds and 1.075 billion pounds ($1.32-$1.45 billion) for its 2026/27 year.
Sainsbury’s made retail underlying profit of 1.025 billion pounds in the year to February 28 2026, down 1.1% on 2024/25 but in line with guidance.
“We have made a positive start to the new financial year, with grocery volume growth ahead of the market. Argos trading continues to reflect a subdued general merchandise market,” it said.
About one quarter of Sainsbury’s sales are non-food, making it more exposed than Tesco to any war-related slowdown in discretionary spending.
($1 = 0.7412 pounds)
Reporting by James Davey; editing by Sarah Young
