Sainsbury's has reported an increase in profits to £695million in their year-end results to March 29. The results reveal an increase of 10.8 per cent in pre-tax profits, an increase from £627m in 2002.

The group's chief executive, Sir Peter Davis said: 'We have made significant achievements in modernising our business through our transformation programme and continued to deliver an improved sales performance.' In the past year the supermarket has continued to win important industry awards including; Fresh Produce Retailer of the year, Wine Retailer of the Year and the Honest Food Award. The store has continued to support British producers and overall, sources more than 90 per cent of fresh foods that can be sourced in the UK from the UK.

Only last month the store launched a major new initiative, Scan and Pack. The scheme aims to create 10,000 new jobs and radically improve their check-out service. Wednesday sees the launch to the national press of their 'first for fresh' campaign (see page 9) as they look to consolidate their position in the fresh produce sector.

In the last 12 months Sainsbury's has opened 15 new supermarkets and 24 locals. Refurbishments took place in 40 stores and extensions in 29, although plans are slowing down for 2003/04 to 10 refurbishments and 23 extensions.

The store has achieved success in the UK online grocery market with sales up 71 per cent year on year and like-for-like sales in existing postcodes up 41 per cent.

Sir Peter Davis said: 'Overall we remain confident we making real progress across the group to achieve our targets.'