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| Sainsbury's sees boost from Argos deal | |
| (35 minutes later) | |
| Sainsbury's says its latest half-year results have been boosted by its takeover of catalogue retailer Argos. | Sainsbury's says its latest half-year results have been boosted by its takeover of catalogue retailer Argos. |
| Adding Argos stores in Sainsbury's outlets was "driving an increase in trading intensity", the retailer said. | Adding Argos stores in Sainsbury's outlets was "driving an increase in trading intensity", the retailer said. |
| The UK's second largest supermarket, which is planning to merge with rival Asda, said half-year underlying profits rose 20% to £302m. | The UK's second largest supermarket, which is planning to merge with rival Asda, said half-year underlying profits rose 20% to £302m. |
| However, when a host of exceptional costs are taken into account, profits nearly halved. | However, when a host of exceptional costs are taken into account, profits nearly halved. |
| Standard pre-tax profits for the 28 weeks to 22 September were £132m, compared with £220m a year earlier. | Standard pre-tax profits for the 28 weeks to 22 September were £132m, compared with £220m a year earlier. |
| The profit figure was pushed down by costs related to restructuring store management teams and preparing for the Asda deal, which is being examined by competition authorities. | The profit figure was pushed down by costs related to restructuring store management teams and preparing for the Asda deal, which is being examined by competition authorities. |
| Like-for-like sales growth for the period - which strips out the impact of new retail space - was 0.6%, which disappointed analysts. | Like-for-like sales growth for the period - which strips out the impact of new retail space - was 0.6%, which disappointed analysts. |
| 'Pleasing' results | 'Pleasing' results |
| Sainsbury's chief executive Mike Coupe said the grocery market was "extremely competitive". | Sainsbury's chief executive Mike Coupe said the grocery market was "extremely competitive". |
| He told the BBC's Today programme: "It's a pleasing set of results against a difficult market backdrop, largely driven by the acquisition synergies from the Argos business." | He told the BBC's Today programme: "It's a pleasing set of results against a difficult market backdrop, largely driven by the acquisition synergies from the Argos business." |
| Julie Palmer, partner at Begbies Traynor, said: "The purchase of Argos has been a well-crafted tactical decision to draw greater footfall into its stores and reduce cost savings measures, with 90 Argos units expected to be opened in stores this financial year. | Julie Palmer, partner at Begbies Traynor, said: "The purchase of Argos has been a well-crafted tactical decision to draw greater footfall into its stores and reduce cost savings measures, with 90 Argos units expected to be opened in stores this financial year. |
| "However, there is still uncertainty around its merger with Asda, with the regulators yet to give the thumbs-up to the deal. | "However, there is still uncertainty around its merger with Asda, with the regulators yet to give the thumbs-up to the deal. |
| "That, coupled with Amazon's acquisition of Whole Foods offering a new online competitor, [means] Sainsbury's cannot rest on its laurels and must continue to innovate and adapt to the needs of its customers." | "That, coupled with Amazon's acquisition of Whole Foods offering a new online competitor, [means] Sainsbury's cannot rest on its laurels and must continue to innovate and adapt to the needs of its customers." |