Supermarket group Sainsbury’s continues to feel the effects of stiff competition from the discounters. It has seen half year underlying profits fall 17.9% to £308m on a slight fall in retail sales, excluding fuel, by 0.1%. Like-for-like sales were down by 1.6%.
Chief executive, Mike Coupe, admitted that “the grocery retail marketplace remains challenging” but said he was “confident we are making progress”.
Underlying profits figure are the lowest since 2010.
However, there was growth in convenience stores as shoppers continue to drift from the big stores to more local outlets. Sales in these stores grew nearly 11%.