Sainsbury posted full-year profits in line with market expectations today, and Britain's third-largest grocer said it would continue to invest in price and quality rather than boost margins.
Sainsbury, which is showing early signs of a turnaround following a decade of underperformance, said underlying pretax profits came in at £254 million, compared with analysts' mean forecast of £255 million.
The company took a £510 million charge during the year linked to chief executive Justin King's plan to reverse flagging sales and dwindling market share, and adjusted for this and proceeds from asset sales, profits came in at £15 million.
While same-store sales fell 0.4 per cent during the year, total sales including new floor space rose 5.5 per cent to £16.36 billion.
Sainsbury recently announced that same-store sales had increased by 1.7 percent in the fourth quarter.