Sainsbury's sharpens online focus

Sainsbury's will launch non-food online offering in the next few months

Supermarket chain Sainsbury's will continue developing its online channel despite reporting a decline in profits in its annual financial results today.

Full-year profit fell 12 per cent, although sales were up by 5.7 per cent. Net profit was £289m for the year ending 21 March, down from £329m reported last year.

Online food sales represent more than £500m of overall sales of £20.4bn and the retailer plans to launch its non-food web offering over the next few months on the back of the channel’s success.

“We have continued to invest in our five areas of focus, each of which has delivered over the past year, and which provide significant opportunities for future growth,” said chief executive Justin King.

“The areas are to build and stretch our lead in food, accelerate the development of non-food ranges and services, extend the reach of our brand via our online and convenience offers, to grow our store estate and actively manage our property assets,” said King.

“Our progress in the last four years has made the company a stronger business with a wide customer base and universal appeal. We are performing well and have significant opportunities for further growth,” he said.

Sainsbury’s online arm has consistently delivered positive results over the past 12 months. The retailer said there is "significant growth potential in its online operation”. It plans to increase capacity in areas of high demand.