Sainsbury renaissance as profits expected to jump by 10%

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The Independent Online

Sainsbury supermarket chief executive, Justin King, is this week expected to say that profits at the group jumped by 10 per cent over the last year as the renaissance in the company's fortunes continued.

Mr King will say that full year earnings at the retailer, which is prospering under his turnaround strategy, came in at more than £530 million.

Recent reports suggest that Sainsbury enjoyed a bumper Easter trading period, taking share from rivals such as Tesco and the resurgent Morrisons.

Sam Hart, analyst at Charles Stanley, said he expected the results to be 'solid', adding that the City was hoped Mr King would provide further details on plans to roll out new stores in the coming years.

Previously Sainsbury has promised to grow new space by 10 per cent for the three years to the end of March 2010. Last year the supermarket chain said it planned to open 50 new convenience stores this financial year.

Sainsbury results come weeks after Tesco, which has been hit hardest by the rise of discount retailers such Aldi and Lidl, revealed it still made profits of more than £3 billion last year. Sales at the Sir Terry Leahy-led group came in at a giant £1 billion every day over the period.