GROCERY chain Sainsbury’s yesterday entered the growing supermarket war by announcing it will invest £1billion to improve its pricing.
It was responding to a similar vow from rival Tesco this month, while Asda said in March it would slash prices in a bid to turn around its fortunes.
GettySainsbury’s has invested £1billion on pricing to fight its biggest rivals[/caption]Sainsbury’s reported that profits rose by 7.2 per cent to £1.03billion for the year.
Grocery sales grew by 4.5 per cent, while sales at its Argos arm slipped by 2.7 per cent to £4.9billion.
With grocery proving to be the battleground, Sainsbury’s boss Simon Roberts said he will “extend food space within many of our existing stores”.
He also plans to open 40 stores this year, a move the chain said will bring 700,000 more people within a ten-minute drive of Sainsbury’s.
AJ Bell investment director Russ Mould said: “When Asda fired the opening salvos in a UK supermarket price war, the markets immediately sat up and took notice.
“And latest updates from Tesco and now Sainsbury’s suggest this was the right call.
“The main winners in a price war would ultimately be shoppers.” Supermarkets will face falling revenue if the price war takes hold.
Tesco acknowledged this last week by admitting the move would lead to weaker profits.
Sainsbury’s said its profits will not be hit hard, which cheered the stock market. Its shares rose almost 4 per cent.
Richard Hunter, of Interactive Investor, said: “Sainsbury’s prodigious cash flow has enabled yet another increase to the dividend.”
BP ECO SWERVE SPARKS REVOLT
SPARKS flew at oil giant BP’s AGM yesterday as shareholders showed their anger at the firm’s shift away from investing in renewables in favour of more oil and gas.
Outgoing chairman Helge Lund got a near 25 per cent vote against his re-election. A revolt this size is almost unheard of among blue chip businesses.
Chief executive Murray Auchincloss tried to reassure investors, saying: “A fundamental reset was needed, which is exactly what we’ve done.”
Investors are angry they have not been offered a vote on the change of strategy.
DUNELM’S DUN WELL
DunelmDunelm has launched a spring bedding collection with Holly Willoughby[/caption]SHARES in soft-furnishings firm Dunelm leapt by more than 11 per cent after it revealed “comfortable sales growth” in the first quarter.
The Leicester-based chain said sales climbed by 6.3 per cent to £462million in the 13 weeks to the end of last month. Furniture “performed well”, it said, but homewares grew too.
Dunelm has launched a spring bedding collection with Holly Willoughby, which the TV star describes as “calming”.
Boss Nick Wilkinson said they are aware “increased uncertainty” impacts consumer sentiment but added the firm continues to attract a broad range of customers.
CHOC UP 'BY HALF'
CHOCOLATE prices have risen by almost half in three years, according to green think tank the Energy and Climate Intelligence Unit.
Its analysis of inflation figures showed the cost is up 13.6 per cent this year compared to last Easter. Last year it climbed 9.8 per cent.
Last month, consumer group Which? found Easter egg prices have climbed by up to 50 per cent on last year, while also shrinking in size.
NEW HIGH IN RUSH FOR GOLD
ReutersGold is on the rise while global stock markets remain volatile[/caption]GOLD prices have been reaching feverish heights as investors turn to the precious metal as a safe home for their cash.
It is on the rise while global stock markets remain volatile and investors are spooked by Trump’s tariff war.
Prices reached a fresh high yesterday morning of £2,539 per ounce, although it eased down a bit later in the day after traders started selling to take profits.
They have climbed by almost a third since the start of the year, soaring by more than £500 an ounce.
Gold has become “the most crowded trade on the planet”, said Stephen Innes, of SPI Asset Management.
Invesco analysts said gold had replaced bonds as “the safe haven of choice”.
“It seems that fewer countries are trusting the US — and therefore US Treasuries as a safe haven asset class,” they commented.
CASH DYING OUT
THE shift away from cash has accelerated since the Covid pandemic, data from ATM network Link has revealed.
Six out of ten people said they are using cash less while four in ten said they have noticed more places not accepting notes or coins.
A quarter revealed they had been turned down when they had tried to pay with cash at some places.
Link’s Graham Mott said: “Interestingly, some people are visiting former cash-heavy spots like cinemas, clubs, pubs and restaurants less often.”
DELIVER-WOOH
THE value of Deliveroo‘s transactions climbed nine per cent in the first three months of 2025 compared with the same period in 2024.
Order growth for the food delivery app hit seven per cent but the monthly average of UK customers fell from 4.1million to 4million. Founder Will Shu said it was a “strong start” to the year.
It recently sold its Hong Kong arm but is branching out into grocery shopping.
Rival Just Eat Takeaway was bought by the investment firm Prosus earlier this year.
POLISH parcel locker firm InPost has spent £100million to purchase UK rival Yodel.
InPost, which has 10,000 parcel lockers in the UK, has agreed to acquire 95.5 per cent of Yodel’s parent company, Judge Logistics LTD, in the deal.
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