THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
RETAIL INSIGHTS
RETAIL SOLUTIONS
• Omnichannel Futures Conference 2020
• Future of Retail Marketing 2020
• The HR Summit 2020
• AI in Retail Conference 2019
ABOUT
CONTACT
SUBSCRIBE FOR FREE
Sainsbury’s profit impacted by failed proposed merger with Asda

Sainsbury’s has seen its full year underlying pre-tax profit increase by 7.8% to £635 million although statutory pre-tax profit was hit by charges relating to its… View Article

FOOD & DRINK

Sainsbury’s profit impacted by failed proposed merger with Asda

Sainsbury’s has seen its full year underlying pre-tax profit increase by 7.8% to £635 million although statutory pre-tax profit was hit by charges relating to its failed proposed merger with Asda.

The retailer attributed the uplift to a “solid” food performance, delivery of £160 million Argos synergies nine months ahead of schedule, and reduced interest costs.

However, the 52 week period to 9 March saw statutory pre-tax profit decline to £219 million from £309 million in the previous year as the retailer was hit by charges relating to legislation on guaranteed minimum pensions, retail restructuring, the integration of Argos and costs relating to the retailer’s proposed Asda merger.

Retail underlying operating profit was up 10.7% to £692 million in the period although like-for-like sales in the fourth quarter edged down 0.9%.

Sainsbury’s said it experienced growth across all of its channels in the year. Sales at its convenience stores and online grocery sales grew by 3.7% and 6.9% respectively. Meanwhile, supermarket sales edged up 1% as the retailer benefited from the addition of Argos stores inside supermarkets.

During the period, Sainsbury’s reorganised its store operations and completed the integration of Argos.

Looking ahead, Mike Coupe, group chief executive of J Sainsbury, said: ” “We will increase and accelerate investment in the core business, investing to improve over 400 supermarkets this year. £4.7 billion of our revenue now comes from our online businesses and we are increasing investment in technology to make shopping across Sainsbury’s, Argos and Sainsbury’s Bank as quick and convenient as possible. We will also continue to strengthen our balance sheet and are making a new commitment to reduce net debt by at least £600 million over the next three years.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, 22 Duchess Mews, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Future of Retail Marketing 2020
Future of Retail Marketing 2020
9 June 2020
Hallam Conference Centre, 44 Hallam St, London W1W 6JJ
The Future of Retail Marketing for Customer Engagement
The HR Summit 2020
The HR Summit 2020
1 October 2020
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2019
AI in Retail Conference 2019
14 October 2020
Hallam Conference Center, 44 Hallam Street, London W1W 6JJ
CONFERENCE AIMED AT RETAILERS WORKING IN MARKETING, IT, DIGITAL, DATA AND TECHNOLOGY