Sainsbury’s Tu reports strong FY25 growth yet mulls redundancies

Supermarket giant Sainsbury’s reported a 4.9 percent increase in overall FY25 sales in a preliminary report published this week, with market outperformance particularly seen within its Tu Clothing line. Despite recording “strong” growth, however, the retailer is eyeing operational changes among the brand’s team, with redundancies believed to be on the table.

According to Sainsbury’s preliminary results for the 52 weeks ended 28 February 2026, clothing sales were up 4.8 percent, as the spring/summer season offset an unseasonal second half weather. This marked Tu’s seventh consecutive quarter of outperforming the broader clothing market, bolstered by a 20 percent online sales growth.

While the results show a positive trajectory for Tu, Sainsbury’s is reportedly in early-stage discussions with the team of the clothing brand to address possible operational changes, The Industry.Fashion said. Redundancies are to be expected, according to the report.

A spokesperson for the company told the media outlet that the review formed part of Sainsbury’s ongoing Next Level Strategy, which is entering its final year. They added: “While we will regrettably lose some roles as part of this process, we expect to see many created as well.”

While on a broader scale Sainsbury’s affirmed it was in a “strong competitive position” as it entered FY26, the company warned that the conflict in the Middle East “will impact both our customers and our business”.

It explained: “The duration and extent of these impacts is very uncertain and this is reflected in our profit guidance, where we currently expect to deliver total underlying operating profit of between 975 million pounds and 1.075 million pounds.”

Commenting in the report, CEO Simon Roberts said: “More and more customers are choosing Sainsbury’s for more of their shopping, trusting us to deliver great value day in day out. The conflict in the Middle East means customers are even more focused on the cost of living and we are absolutely committed to making sure everyone gets the best possible value when they shop with us.”