Sainsbury’s predicts flat profits as competition heats up
Sainsbury’s has said it expects to deliver flat profits in its current financial year as it looks to remain competitive amid signs of a looming price war.
The news came as the supermarket announced that it had increased its retail underlying operating profit by 7.2% to £1.036 billion in the year to 1 March. Sales excluding fuel were also up, rising by 6.2% to £26.6 billion.
Subscribe to TRBHowever, Sainsbury’s is expecting its retail underlying operating profit for the current financial year to come in slightly lower than the last at around £1 billion.
The supermarket said it has made four years of exceptional progress and investment, which has included a reset of its value proposition and a strengthening of the fundamentals of its business. It added: “This puts us in a strong competitive position and we are committed to sustaining this in the year ahead.”
Looking ahead, Sainsbury’s said it expects to open a total of 15 supermarkets during 2025/26 and add another 25 new convenience stores in each of the next two years.
Simon Roberts, chief executive of J Sainsbury, said: “We have created a winning combination of value, quality and service that customers love, investing £1 billion in lowering our prices.
“More people are choosing Sainsbury’s for their main grocery shop as a result, delivering our highest market share gains in more than a decade.
“We are committed, above all else, to sustaining the strong competitive position we have built – consistently giving customers the great value they have come to expect from Sainsbury’s – and we expect to continue to outperform the market.”
