The battle to be the UK’s second-largest supermarket rages on
Sainsbury’s has released its half-year results which show a profit fall of 17.9% to £308m compared with last year.
Like-for-like sales fell 1.6%, with September signalling the seventh consecutive quarter of falling sales at the supermarket.
Sainsbury’s actually performed better than the £293m analysts expected, however, its profits are still the lowest since 2010.
The supermarket is locked into a battle with rival Asda over second place in the rankings of the UK’s biggest supermarket. There’s only 0.5% market share between them with Asda currently on top, but its half-year results could be a sign Sainsbury’s is struggling to compete.
Mike Coupe, Sainsbury’s CEO, blamed the results on a tough retail climate and said the supermarket was on track to deliver £225 million in cost savings by the end of the financial year, as part of the target of £500 million cost savings over the next three years.
He said: “The grocery retail marketplace remains challenging but Sainsbury’s is a great business, run by an experienced management team, supported by talented colleagues and strong values. I am confident we are making progress and we are looking forward to a successful Christmas, offering our customers fantastic products and great value.”