Sainsbury’s is expected to announce a 10 per cent rise in interim profits on Wednesday.
City experts are forecasting an underlying profit of between £260 million and £270m, which will represent a decent result for the UK’s number three supermarket chain from a period of intense competition.
Sainsbury's registered like-for-like sales growth of 4.3 per cent for the 16 weeks to October 4, but that failed to please the City, which was in the throes of despair at the time of the announcement.
But Wednesday’s results should meet with more approval. Royal Bank of Scotland analyst Justin Scarborough told the Press Association fears over customers trading down have been overplayed and that Sainsbury’s is picking up shoppers deserting the likes of Marks & Spencer and Waitrose.
"We believe the market is underestimating how far Sainsbury's business model has moved over the past four years and, as such, it underestimates the company's ability to operate in current trading conditions," Scarborough said.
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