As a price war between supermarkets hots up and bosses bat away accusations of greedflation, the spotlight will be on Sainsbury’s next week.
At its last address to investors in April, the grocer reported a 5 per cent fall in annual profit to £690m for the year to March 4 but said it was starting the new financial year with great momentum, predicting profits of £640m to £700m this year.
Last week the ‘Big Four’ grocer announced price cuts across products such as pasta and rice to woo shoppers from discounters Aldi and Lidl.
It cut the price of milk, reducing its own brand to just £1.45 for four pints and £1.20 for two pints. Sainsbury’s said: ‘We’re doing everything in our power to keep prices low.’
Investors will be keeping an ear out to hear what chief executive Simon Roberts has to say about making life easier for millions of households.
Britons have been battling stark increases in grocery bills, and rises in the cost of everything from fuel to mortgage payments, following Russia’s invasion of Ukraine.
Aarin Chiekrie, an analyst at Hargreaves Lansdown, said: ‘With the cost-of-living crisis rumbling on, Sainsbury’s is throwing a lot at becoming better value, but that comes at a cost, and analysts saw full-year profits fall.
‘Next week’s statement will shed some light on trading across the first quarter. Given the tough economic backdrop and shrinking consumer budgets, Sainsbury’s needs to keep getting its hands dirty and fighting for market share.’
