Sainsbury, a supermarket chain based in the UK, witnessed its profits for the first half of the financial year drop by £40 million when compared to the same time last year.
The United Kingdom’s second-largest retailer reported a 15% drop in profit for the first half due to bad weather conditions and high marketing costs.
Sainsbury which holds 15% of the market share witnessed a 34% drop in its share price after the British Government blocked the take over of Asda for £7.3 billion.
The 150-year-old company’s pre-tax profit for the first half which ended in September stood at £238 million. The company generated £279 million in pretax profit for the same time last year which is far below the expected number.
The retail giant expects to perform well in the second half of the financial year, according to reports.
According to CEO Mike Coupe, the company is investing heavily in marketing and customer satisfaction.
The overall sales of the retail giant stood at £16,9 billion with its 172 supermarkets and 158 convenience stores. The company also said it would launch 123 value brand products which would bring the total to 200 products.