Sainsbury’s is set to become the latest supermarket to report a fall in profits.
Britain’s second-biggest grocer is under pressure from discounters Aldi and Lidl, which are gaining market share as the cost-of-living crunch deepens.
Food prices are rising at 19.2 per cent – their fastest annual rate in 45 years and almost twice as much as inflation overall.
Under pressure: Sainsbury’s is expected to post annual pre-tax profits of up to £690 million, down from £730 million in the previous year
Sainsbury’s is this week expected to post annual pre-tax profits of up to £690 million, down from £730 million in the previous year.
Market leader Tesco recently reported sharply lower earnings as soaring costs hit the company’s bottom line.
Sainsbury’s share price has performed very well so far this year, rising by a quarter amid hopes that the economy will avoid recession.
The grocer recently re-launched its Nectar loyalty card in a bid to lure price-conscious shoppers away from its German discounting rivals.
Tesco already provides similar offers to its Clubcard holders.
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