// Sainsbury’s posted a dip in profits as the business swallowed some of the impact of soaring costs
// The supermarket has stuck to its full year guidance for underlying pre-tax profit of between £630 and £690m
Sainsbury’s half-year profits has fallen as it tries to keep prices affordable for cash-strapped consumers amid record-high inflation.
The supermarket chain, which also owns Argos, said underlying pre-tax profit declined by 8% to £340 million over the half-year to September 17.
The grocer also revealed that total revenues jumped 4.4% to £16.4 billion over the half-year, compared with the same period last year.
Grocery sales were up 0.2%, with the Big 4 grocer attributing the “strong growth” to the easing of lockdown restrictions, market price inflation and warmer weather.
The retailer stuck to its full year guidance for underlying pre-tax profit of between £630 and £690m.
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The group said it has benefited from investment to help swallow cost inflation for key products and keep pricing lower for customers, with £500 million to be invested in pricing.
Sainsbury’s said it is “well placed through the peak trading period and into next financial year to support customers as they manage further cost-of-living pressures”.
The group is halfway through a £1.3 billion cost-saving programme, which has seen it shut down in-store restaurants and standalone Argos shops.
It expects to close around 50 Argos stores this year as part of the previously announced plans, with around 25 Argos sites set to open within larger Sainsbury’s shops.
Sainsbury’s chief executive Simon Roberts: “We really get how tough it is for millions of households right now. Customers are watching every penny and every pound and we know that they are relying on us to keep food prices as low as we can.
“We will have invested more than £500 million by March 2023 in keeping prices lower by cutting our costs at a faster rate than our competitors, meaning we have more firepower to battle inflation.
“Over the past year and a half we have consistently passed on less price inflation than our competitors and I am confident we have never been better value.”
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