IN the summer British supermarket multiple Sainsbury introduced the public to the delights of kangaroo meat and is soon to introduce a banking service for customers. Innovative, certainly but on the trading level Sainsbury is going through a rough patch. Kangaroo meat nothwithstanding, rival Tesco has jumped ahead of Sainsbury in turnover and market share.

Half yearly results from Sainsbury this week show a 14 per cent fall in pre-tax profits to £393 million sterling. Turnover slipped 1 per cent over the period in contrast to a 3 per cent gain by Tesco. A higher wage bill, lower prices and the costs of introducing a "loyalty" card were blamed as "once-off" reasons for the setback.

Chairman Mr David Sainsbury is hopeful that the worst is over and forecasts improved earnings and profits as "operational changes" take effect.

The market was also optimistic, lifting the shares 8p to 363p, which one industry analyst described as "a triumph of hope over statistics". Interim dividend rises 3 per cent to 3.5p.