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| Sainsbury's half-year profits fall by 18% | |
| (35 minutes later) | |
| Supermarket group Sainsbury's has reported a 17.9% fall in underlying half-year pre-tax profits to £308m. | Supermarket group Sainsbury's has reported a 17.9% fall in underlying half-year pre-tax profits to £308m. |
| The firm said in the 28 weeks to 26 September that retail sales, excluding fuel, were down by 0.1%. Meanwhile, like-for-like sales were down by 1.6%. | The firm said in the 28 weeks to 26 September that retail sales, excluding fuel, were down by 0.1%. Meanwhile, like-for-like sales were down by 1.6%. |
| At the end of September the company reported its seventh consecutive quarter of falling underlying sales. | At the end of September the company reported its seventh consecutive quarter of falling underlying sales. |
| In common with other big chains, Sainsbury's has faced competition from discount retailers like Aldi and Lidl. | In common with other big chains, Sainsbury's has faced competition from discount retailers like Aldi and Lidl. |
| The company's chief executive, Mike Coupe, admitted that "the grocery retail marketplace remains challenging" but said he was "confident we are making progress". | The company's chief executive, Mike Coupe, admitted that "the grocery retail marketplace remains challenging" but said he was "confident we are making progress". |
| He added: "We are looking forward to a successful Christmas, offering our customers fantastic products and great value." | He added: "We are looking forward to a successful Christmas, offering our customers fantastic products and great value." |
| Online boost | |
| The £308m profits figure was its lowest first-half profit since 2010, and down from £375m last year. However, the figure was still ahead of analysts' expectations of about £293m. | |
| Sainsbury's said food sales had declined by nearly 1%, but clothing performed strongly, with sales up by close to 10%. | |
| Sales at supermarkets fell by just over 2%, driven by food deflation, lower like-for-like volumes, and "customers shopping across multiple channels". | |
| However, convenience stores delivered sales growth of nearly 11%, while online grocery orders delivered sales growth of 7%. |