SHARE OF THE WEEK: Sainsbury’s in spotlight

As a price war flares up between supermarkets and bosses dismiss accusations of greed, Sainsbury’s will be in the spotlight next week.

Speaking to investors in April, the grocer reported a 5 per cent drop in full-year profit to £690m for the year to March 4, but said the new financial year started with great momentum, forecasting profits of £640m to £700 million this year.

Last week, the Big Four grocer announced price cuts on products like pasta and rice to win over shoppers from discounters Aldi and Lidl.

It reduced the price of milk and reduced its own brand to just £1.45 for four pints and £1.20 for two pints. Sainsbury’s said: ‘We do everything we can to keep prices down.’

Investors will listen to what CEO Simon Roberts has to say about making the lives of millions of households easier.

Britons have suffered sharp increases in food bills and increases in the cost of everything from fuel to mortgage payments following the Russian invasion of Ukraine.

Aarin Chiekrie, analyst at Hargreaves Lansdown, said: “As the cost-of-living crisis continues, Sainsbury’s is doing everything it can to get better value, but that comes at a cost, and analysts saw earnings over the fall all year round.

Next week’s statement will shed some light on Q1 trading. Given the difficult economic conditions and shrinking consumer budgets, Sainsbury’s must continue to get its hands dirty and fight for market share.’