Sainsbury’s Hits £1 Billion Profit Despite Job Cuts and Café Closures

By Evans Momodu
Published 17:40



Sainsbury’s reports £1bn in annual profits amid job cuts, store closures, and a heated supermarket price war. Learn what this means for shoppers and the UK grocery market in 2025.

Sainsbury’s, the UK’s second-largest supermarket, has reported annual profits of £1.036 billion for the year ending March 2025, despite facing a turbulent year of cost-cutting, job losses, and rising competition in the grocery market.

The retailer credited much of its success to a £1 billion investment in price reductions, which helped fuel a “record-breaking year in grocery” and its strongest market share gain in over a decade.

According to recent data from Kantar, Sainsbury’s now holds the second-highest market share, ahead of Asda but still trailing Tesco.

However, Sainsbury’s has warned that future profits will unlikely rise, citing an intensifying UK supermarket price war. Like Tesco, Sainsbury’s says its priority is maintaining value for customers rather than chasing profit growth.

“We expect flat profits this year,” the company said in its earnings report, “as we compete aggressively on price.”

While profits remained strong, Sainsbury’s made cost-cutting decisions that impacted thousands of staff. In January, the retailer announced the closure of all 61 in-store cafés, along with the removal of hot food, patisserie, and pizza counters. These changes contributed to the planned cut of over 3,000 jobs across the UK.

The closures were part of a strategy to streamline operations in what Sainsbury’s called a “challenging cost environment.”

Sainsbury’s has also voiced strong criticism of the UK government’s national insurance hike. The new rate, which took effect in April 2025, is expected to cost the supermarket an extra £140 million—a figure not yet reflected in its latest financial results.

Despite the cost pressures, Sainsbury’s plans to open new stores in “key target locations” to further expand its footprint. The company sees this as a “unique opportunity to drive further market share gains” as it continues to compete with rivals Tesco and Asda.
Source:Sky News