Sainsbury’s feels discounter impact, with £72m loss
Sainsbury’s has posted a £72 million loss in its yearly results – the supermarket’s worst results for a decade.
Underlying pre-tax profits were also down 14.7% to £681m for the 52 weeks to the 14 March 2015, compared to £798m for the year before.
Like-for-like sales were also down 1.9%.
As consumers opt for hard discounters, Lidl and Aldi, Sainsbury’s is feeling the brunt of a supermarket price war, which has seen heavy losses for the big four supermarkets, including Tesco, Asda and Morrisons.
Meanwhile, Sainsbury’s incurred a one-off charge of £753m, related to the write-down of the value of some of its stores.
Mike Coupe, CEO, said in a statement: “The UK marketplace is changing faster than at any time in the past 30 years, which has impacted our profits, like-for-like sales and market share.”
Coupe said the supermarket would continue to concentrate on lowering prices: “We know that our customers still want the best-quality food at great prices and our strategy is built on our strong foundations of selling great food with a focus on quality, provenance and sustainability. At the same time, we know that our customers want value for money and we have therefore invested in lowering our prices; our prices versus our competitors have never been better.”
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- mike coupe