Britain's second biggest supermarket chain, Sainsbury posted a 10.7 per cent rise in first-half earnings today but a lower pace of salesgrowth reflected slowing consumer spending.
Sainsbury said pre-tax profits before exceptional items roseto €543 million in the six months ended October 12th.
"This is the fourth consecutive half-year of improvedunderlying group profits, a clear reversal after two years ofdecline," said Chief Executive Mr Peter Davis, architect of athree-year recovery plan involving store refits and a TVadvertising campaign featuring celebrity chef Jamie Oliver.
With the critical Christmas period close and pressure onsupermarkets to keep prices down, the heat is on for Sainsburyto prove that its investments in store refurbishments, loyaltycards and promotions are paying off.