// Sainsbury’s is set to report a fall in annual pre-tax profits this week, posting up to £690 million, down from £730 million last year
// Retailers have been battling it out to retain customers hit by inflation as shoppers head to Aldi and Lidl to stretch their cash
Sainsbury’s is set to become the latest supermarket to report a fall in profits as it continues to face increasing pressure from discounters Aldi and Lidl, which are gaining market share as the cost-of-living crunch deepens.
This week, Britain’s second-biggest grocer is expected to post annual pre-tax profits of up to £690 million, down from £730 million in the previous year.
Food prices are rising at 19.2%, their fastest annual rate in 45 years and almost twice as much as inflation overall.
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According to the latest Kantar survey, Sainsbury’s reported a strong 12-week sales growth of 12% at the end of March, but this fell short compared to rivals Aldi and Lidl.
The discounters are gaining market share as food prices rise to their fastest level in 45 years, at 19.2%
Retailers have been battling it out to retain customers hit by inflation, and in a bid to win over consumers, earlier this month Sainsbury’s announced it would be offering customers up to half price on hundreds of products in stores and online as part of its new loyalty initiative, Nectar Prices.
Chief executive Simon Roberts said: “We are delighted to launch Nectar Prices, which will help millions of our customers save more on every trip to Sainsbury’s.
“There is much more to look forward to, we will keep refreshing Nectar Prices and increasing the variety of products on offer. It gets better, Nectar customers who shop in store with SmartShop will receive extra personalised value with Your Nectar Prices, bringing them the best prices on their favourite products.”
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