Supermarket group Sainsbury's, owner of Habitat and Argos, reported mixed third-quarter sales for the 16 weeks ending 3 January 2026. Total sales grew 3.9%, led by a 4.9% increase in Sainsbury's core business, while General Merchandise revenues fell 1.1% and Argos sales declined 1%.
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The group attributed Argos's weaker performance to subdued spending on higher-ticket items such as furniture, ongoing heavy promotions, and a weak gaming market. Despite these headwinds, the retailer noted that volume growth was achieved across the quarter, reflecting progress in the ongoing Argos transformation plan.
Habitat performed strongly, with sales up 6%, and the relaunched Chad Valley range grew 7%, surpassing expectations. Sainsbury's highlighted gains in Homewares, Electricals, and Toys as offsets to the broader General Merchandise challenges.
The results underline the contrasting fortunes of Sainsbury's portfolio: while core supermarket operations remain robust, discretionary categories, particularly furniture at Argos, continue to face pressure from consumer caution and market-wide pricing trends.
Source: www.bigfurnituregroup.com
