Sainsbury’s profits in line with expectations

Sainsbury’s fourth quarter profits were hit by a tightening of purse strings after like-for-like sales excluding fuel rose just 1.7%.

Meanwhile, like-for-like sales, excluding fuel, for the full year were up 4.3% which chief executive Justin King said were “in line with expectations”.

The UK’s third largest supermarket said it is now bringing in a million more customers a week.

Last year, the chain benefited from the economic downturn after luring customers away from upmarket chains such as Marks and Spencer and Waitrose as cash-strapped consumers looked to save money.

Furthermore, bargain hunters have been opting for the supermarket’s ‘basics’ range which has boosted sales at the group.

During the last quarter, the company said it opened six supermarkets and finished five extensions, resulting in around 1,500 new jobs.

However, the 140-year-old company said the retail outlook for 2010 “remained challenging”.

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