London, Jan 19, 2026, 12:17 GMT — Regular session
- Sainsbury shares climbed in London, gaining ground while the broader market lagged.
- A routine buyback disclosure kept the focus squarely on capital returns and how cash is being deployed.
- Tariff headlines and consumer sentiment continue to drive swings for UK retailers.
Shares in J Sainsbury plc climbed roughly 1.2% to 318.6 pence during London trading on Monday, having earlier peaked at 321.4 pence. The stock closed the prior session at 314.8 pence. (Hargreaves Lansdown)
UK stocks fell after U.S. President Donald Trump warned of fresh tariffs on Britain and seven other European nations amid a spat over Greenland. The FTSE 100 dropped 0.6% in morning trading, according to Reuters data. (Reuters)
Food retailers usually fare better in risk-off market environments. Investors also appreciate their consistent cash flow, particularly when the company is busy reducing its share count.
Sainsbury disclosed in a regulatory filing that it purchased 636,600 ordinary shares on Jan. 16 via broker BNP Paribas, at prices ranging from 312.4 pence to 316.0 pence each. The company plans to cancel the repurchased shares. (TradingView)
The purchases form part of a buyback programme valued at up to £92 million, which kicked off in November and is set to wrap up by the financial year’s end on Feb. 28, 2026, according to the company’s investor site. A buyback means the firm uses cash to repurchase its own shares, cutting the number available in the market. (Sainsburys)
The buyback comes amid a mixed trading update. Earlier this month, the grocer said grocery sales rose 5.4% during the Christmas quarter but warned of softer sales in general merchandise and at Argos. It kept its profit forecast for the year ending March unchanged. (Reuters)
Sainsbury’s CEO Simon Roberts highlighted a drop in cost pressures on food. “We’ve seen food inflation come down,” he told reporters after the update, predicting that decline would persist into 2026. (Reuters)
Within the sector, Tesco still stands as the main benchmark for UK grocers, with discounters ramping up the pressure on prices. Sainsbury faces a familiar challenge: can robust food sales compensate for weakness in non-food categories?
But risks remain. Should tariff threats dent confidence more broadly, UK households could tighten their belts on discretionary spending, weighing on Argos and clothing sales. A sharper price war in groceries would squeeze margins, even if volumes stay steady.
Traders are currently focused on how defensive UK staples hold up amid the day’s geopolitical news — and if buyback activity continues to support prices during weaker sessions.
Sainsbury’s is set to release its preliminary results on April 23. (Londonstockexchange)
