The UK’s second largest grocer, Sainsbury's has reported its Interim Results for the 28 weeks to 21 September 2019, showing underlying profit fell by by £41m to £238m.
This alarming result is due to the combined impact of the phasing of cost savings, higher marketing costs and tough weather comparatives.
The group sales stood at £16,856m, which is down 0.2%, and retail sales (excluding fuel) were down by 0.6%, and like-for-like sales (excluding fuel) fell by 1%.
The group is investing in its store estate and have improved 172 supermarkets and 158 convenience stores this half. It will improve 450 supermarkets and 200 convenience stores this financial year.
Mike Coupe, Chief Executive, said, 'We have created positive momentum across the business through strategic investments in our customer offer. We have lowered prices on every day food and groceries, launched a range of value brands and are more competitive on price than we have ever been.
'We are investing in hundreds of Sainsbury's and Argos stores, introducing new products and services and continually improving service and availability. As a result, customer satisfaction has increased significantly year on year.
'We have set out our plan to create one multi brand, multi-channel business. This will make the combined Sainsbury's and Argos offer much more accessible for customers and gives us the opportunity to make our business more efficient.
'We offer great quality at affordable prices with convenient ways to shop. I would like to thank colleagues for all their hard work at this busy time of year. We are very much looking forward to delighting our customers throughout the upcoming festive period.'