The 7 per cent markdown in the J Sainsbury share price yesterday was not kind. Apart from a blow-out in the cost of creating a new IT platform in Sainsbury’s Bank, there were few nasty surprises in the half-year figures. Sales and profits were down, but no more than expected, and the dividend cut had been well signalled.
Moreover, there were a couple of encouraging signs that Mike Coupe, the successor to Justin King, is steering the supermarket group quite effectively through the storm created by the rise of the discounters. One was cost-cutting, which is £25 million a year ahead of plan.
Another was the evidence that the push deeper into small convenience stores is paying off, with their sales up 11 per cent