Cost-of-living crisis hits Sainsbury’s | Daily Mail Online
Sainsbury’s becomes latest supermarket to report profit drop: Britain’s second largest grocer under pressure from discounters Aldi and Lidl
Sainsbury’s becomes the latest supermarket to report a drop in profit.
Britain’s second largest grocer is under pressure from discounters Aldi and Lidl, which are gaining market share as the cost of living rises.
Food prices are rising at 19.2 percent – their highest annual rate in 45 years and nearly twice the rate of general inflation.
Under pressure: Sainsbury’s is expected to post annual pre-tax profits of up to £690m, down from £730m the previous year
Sainsbury’s is expected to post annual pre-tax profits of up to £690m this week, down from £730m the previous year.
Market leader Tesco recently reported sharply lower profits as rising costs hit the company’s bottom line.
Sainsbury’s share price has done very well so far this year, rising by a quarter on hopes the economy will avoid a recession.
The grocer recently relaunched its Nectar loyalty card in an effort to lure price-conscious shoppers away from its German price competitors.
Tesco already offers similar offers to its Clubcard holders.