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Sainsbury’s eyes dividend cuts as profits set to fall
Spending cuts, including a reduction in its dividend, are tipped to be on the agenda for Sainsbury’s on Wednesday as the supermarket prepares to rein in costs along with its first-half results.
Analysts expect chief executive Mike Coupe will reveal a disappointing 12.5 per cent fall in profits to £350m for the period, as the chain faces growing competition from discounters Lidl and Aldi, which are siphoning market share from stalwarts such as Tesco, Morrisons and Asda.
Coupe took over from Justin King as boss of Sainsbury’s in July and announced a strategic review of the business last month. The supermarket’s dividend, which costs around £290m, is expected to bear the brunt of Coupe’s cost cutting measures.
Sainsbury’s declined to comment.