Sainsbury’s profits fall again
Sainsbury's interim report has been published, featuring further disappoinging results for the UK grocery retailer
10 November 2016
There is disappointment for Sainsbury’s this week as the retailer’s interim report for 2016 revealed a drop in profits, with a further slide predicted for the second half of 2016.
In its report for the 28 weeks to 24 September 2016, Sainsbury reports a 1% drop in like-for-like sales, which translates to a pre-tax profit of £277m, representing a 10.1% drop on the same period last year.
Furhtermore, the company warned that profits in the second half of the year to be lower than expected again, due to a combination of ongoing investment in prices and, yes you’ve guessed it, inflation due to Brexit.
Despite the less-than-celebratory results, Sainsbury’s chief executive Mike Coupe pointed to some positive elements within the business, including plans for digital expansion of Argos, part of Home Retail Group, which Sainsbury owns.
“By Christmas we will open 30 Argos digital stores,” Coupe said, “and create a further 30 Argos digital collection points in our supermarkets.”
The company plans to have 250 Argos outlets in supermarkets over the next three years.