But the fact he has been bold enough to suggest that profits might be slightly ahead of expectations in this morning’s interim results is significant – it’s unusual for Sainsbury’s to say anything about profits in a trading update.
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The group now expects full-year profits to be “moderately” ahead of the £548 million expected in the City, although this is still a sharp fall from the £681 million reported the previous year.
Like-for-like sales, excluding fuel and the effect of new store openings, were down 1.1 per cent in the second quarter, which was an improvement in the 2.1 per cent fall reported the previous quarter.
Amid falling food prices and intense competition, earnings at Britain’s largest supermarkets have dwindled over the last 18 months as an increasing number of shoppers have defected to Aldi and Lidl. It added that this is the sixth consecutive month that sales among the grocers grew by less than 1%.
Sainsbury’s chief executive Mike Coupe might not exactly be cracking open the champagne this morning (even if it is on £14 special offer at his supermarket).
Discount retailer Aldi is to move into online sales in the latest headache for more established rivals in the fiercely competitive grocery sector.
Sainsbury’s revenue was down again in the second quarter of the grocer’s final year, although the decline was less than the market had expected.
Mr Coupe, who took over from long-standing predecessor Justin King last July, unveiled a wide-ranging plan to fight back in November, which included price cuts to 1,100 items and an overhaul of its own-brand ranges.
The retailer said it created 7,000 jobs past year, and now employs 28,000.
Part of the supermarket group’s success has been its push into smaller, more convenient Sainsbury’s Local stores.
Analysts at Bernstein Research suggested that the big rise in the shares was due to the more upbeat tone in the statement.
Coupe has previously said he expects like-for-like sales to be negative in the full 2015-16 year.
Sainsbury’s also announced it had opened 27 convenience stores during the quarter and that clothing sales had been up almost 13%.
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Rival Morrisons turned up the heat on Tuesday, pledging to pay its staff £8.20 an hour from March.
