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Sandra Halliday Published
July 4, 2025
A Q1 trading statement for Sainsbury's on Tuesday, showed the company returning to volume growth overall, although sales in its clothing division were down in the 16 weeks to 24 June.
The supermarkets giant operates, the Tu Clothing label, along with other fashion brands, and said clothing sales dropped by 3.7%.
They were impacted by the cooler weather this spring, with stronger sales in the later weeks of the quarter as the weather improved. But ingot news, the company said “full-price sales participation increased year on year in a highly promotional market”. And clothing online “benefited from the migration to the Argos web platform and the introduction of more third-party brands”.
Back in May it had emerged that the retailer was diving deeper into third-party brands and was aiming to build a new online marketplace along the lines of those operated by retailers such as M&S, Next and John Lewis.
Sales of its clothing unit have been declining for some time with a 1.9% sales fall in Q4, a 1.3% rise in Q3, a 0.2% fall in Q2 and a 10.1% drop in Q1 a year ago.
However, as it commented in the latest quarter, it has been selling more goods at full price and this will have been supporting its all-important margins.
And even with the sales dips, Sainsbury’s remains one of the UK’s largest clothing retailers.
The company also said it saw continuing strong grocery segment momentum (up 11%), reflecting its focus on value and innovation. And 4% General Merchandise growth was driven by further Argos market share gains. GM growth divided into a 5.1% increase at Argos, but a 1.2% fall for the Sainsbury's branded GM offer.
Much of the GM growth was driven by categories that, across the retail sector, had previously not been the strongest, including consumer electronics, and household electricals. However, the late arrival of warmer weather impacted sales of summer products earlier in the quarter.
The trading update came just after Sainsbury’s had announced a £100,000 Tu Clothing donation from the proceeds of school uniform sales to support school meals and food clubs across the UK. It also said it was freezing its uniform prices.
Comic Relief will split the £100,000 donation evenly between two of its key projects — Feeding Britain, an award-winning charity “with a vision of a UK where no one goes hungry”, and The Bread and Butter Thing, whose aim is to provide affordable food to the UK’s most deprived communities.