Executive Summary

• Sainsbury’s reported comparable sales ex fuel fell 0.2% year over year in 2Q10, compared to a 1.6% decline in the previous quarter.
• Management expects 1H20 underlying pretax profits to be down by £50 million year over year but FY20 underlying pretax profits to be in line with consensus expectations.
• The company sees an opportunity to cut costs by £500 million over five years. It plans to close 10-15 supermarkets, 60-70 Argos stores and 30-40 convenience stores, while opening 10 new supermarkets and 110 new convenience stores.