Fire-fighting on pricing and availability impacted on retailer's profits
Embattled supermarket group Sainsbury's has issued its second-quarter trading statement for the 16 weeks to October 9.

It showed that the grocer had increased sales, excluding petrol, by 1.5 per cent over the period, compared with a growth of 0.8 per cent in the first quarter. However, like-for-like sales dipped by 1.1 per cent.

Total figures were boosted by petrol sales, contributing to growth for the quarter of 4.4 per cent.

Sainsbury's chief executive Justin King said: 'Total sales growth includes a contribution from both Bells Stores and Jackson's, with the like-for-like increase of 1.8 per cent reflecting the strong trading from petrol. Underlying profit before tax for the first half of 2004/2005 was impacted by the margin investment and additional costs of managing availability.'

Underlying profit before tax for the first half of the year is expected to be betweenÂŁ125 million andÂŁ135 million. The retailer expects the second half of the year to yield similar results.

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