# Sainsbury’s says sales encouraging but impact of Iran war still ‘uncertain’

By Susannah Streeter — 2026-06-30

Susannah Streeter, chief investment strategist at Wealth Club, said: “Sainsbury’s results are like a mirror image of what’s happening when it comes to spending across the wider UK economy.

“While grocery sales remained robust, reflecting continued spending on essentials, weaker performance at Argos and across clothing and general merchandise suggests consumers are still hesitant to splash out on discretionary purchases.

“Concerns about the impact of the Iran war are still bubbling away in the background, with households bracing for higher bills, and that’s also likely to have an impact on spending patterns.

“While Sainsbury’s has maintained its full-year profit guidance, the repercussions from the Middle East conflict still may not have fully fed through, with the company highlighting continued uncertainty ahead.

“The retailer has been helped by some timely tailwinds, with the heatwave driving demand for fans, summer food, drinks and seasonal products, while the World Cup has boosted sales of large-screen TVs and party essentials.

“However, with Argos sales still slipping overall, it’s clear these seasonal boosts haven’t been enough to overcome wider consumer caution.

“Shoppers appear willing to spend on immediate needs and special occasions but are still looking for value and carefully weighing up non-essential purchases.”

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