Sainsbury's surprises on the upside
Half-year profits from supermarket giant Sainsbury's today surprised many analysts with pre-tax profits for the period up to £342 million from £258 million during the corresponding period last year. The company also announced sales growth of 3.7% to £11.15 billion however, when excluding fuel sales this figure is a very impressive 7.9% and reflects the growing status which Sainsbury's has in the retail market again.
Under the stewardship of Justin King there has been a marked turnaround in the fortunes of Sainsbury's and the company is looking to increase floor space by 15% over the next two years. However, despite these better-than-expected figures and substantial growth in underlying sales the company is still cautious about the short to medium term outlook for the UK due to economic uncertainty. In particular the company has highlighted reduced food price inflation which will have a detrimental impact upon short to medium term sales growth, placing more pressure on the company's cost base and suppliers.
On the whole, during the recent economic downturn the likes of Tesco and Sainsbury, to name but two, have performed very well having adjusted their promotions and stock to take account of the difficult economic environment. However, it is interesting to note that despite often better-than-expected figures from the major supermarket groups, they are still very cautious about the UK economy in the short to medium term. You have been warned!
Share this..
Related stories
Taxpayers set to feel the strain
As the UK budget comes under more and more pressure with a £175 billion deficit expected this year alone, many taxpayers are already braced for a significant increase in their taxes. Despite what the government and opposition parties are saying in the House of Commons and in the press there is no doubt that taxes will need to rise, and rise quickly, in order to put the UK government budget back o...
Read MoreIs Gordon Brown really the champion of the middle classes?
Gordon Brown has today reiterated his stance regarding the middle classes of the UK despite only days ago ridiculing David Cameron because of his "privileged background". Indeed Gordon Brown has spoken in detail about his own "privileged background" with many suggesting he is trying to align himself with those in middle England, who effectively won the election for the Labour Party last time. T...
Read MoreScottish unions demand investment into labour market
The Scottish Trade Union Congress has today demanded significant investment into the Scottish labour market amid signs that the economic upturn seen in other areas of the UK has not be replicated in Scotland as yet. One of the factors highlighted by the unions is the latest youth unemployment figure which has ballooned by 89% in the 2 years to February 2010. This is a major problem for the Scottis...
Read MoreBudget Headlines : Digital investment to increase - no figure announced
Digital investment to increase - no figure announced...
Read MoreIs it morally correct to subsidise overseas companies?
With Lord Mandelson set to deliver a £400 million subsidy to Magna, the probable acquirer of GM Europe, there are concerns as to whether state aid, at least to such a level, is both morally and politically correct.
The truth is that a £400 million subsidy, along with a guarantee of employment for thousands of UK workers in the short to medium term, is probably worth significantly...