Sainsbury's Set For 'Strong' Profit Growth Despite Glitch

Sainsbury’s has said it expects to deliver “strong” profit growth over the year ahead after cheering surging food sales by reining in prices to help win customers from rivals.

- HOLLY WILLIAMS

The supermarket giant reported a better-than-expected 1.6 per cent rise in underlying pre-tax profits to £701m for the year to 2 March. However, the figures came as the chain was hit by an embarrassingly-timed delivery service issue for online orders yesterday.

Sainsbury’s said the problems were now resolved and only affected a “small number” of customers. Yet, it follows just weeks after the firm was left unable to take contactless payments due to a software update, leaving a raft of customers without home delivery orders.

In its full-year figures, the UK’s second-biggest grocery chain said total grocery sales increased 7.3 per cent in the fourth quarter and 9.4 per cent over the year, as it saw sales by volume pick up as inflation eased back. This helped offset a tough market for general merchandise, with fourth-quarter Argos sales down 6.6 per cent and clothing tumbling 11.7 per cent.