Sainsbury’s Remains at Bottom for Profit Margin

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Nov. 13 (Bloomberg) -- Bloomberg Industries’ Charles Allen reviews earnings from Sainsbury’s and compares their profit margin to other grocers. He speaks on Bloomberg Television's "On The Move." (Source: Bloomberg)

In sales terms, they have done brilliantly.

30 nine quarters of better than expected like for like sales and good things.

In profits, they remain at the bottom of the pack.

It's profit margin of 3.5% or so is well below those of tesco and morrison's. on the other hand him a sainsbury is -- on the other hand, sainsbury is moving in the right direction.

Talk to me on how they see growth in the market.

What do consumers want nowadays?

This is really tough.

People are buying less.

Reduction of waste has been a big thing.

What do you have that is driving the market?

One, we have population growth.

We are expecting another magister in the next five years.

The are expecting room to grow.

You need to build stores and sainsbury is doing that.

Secondly, there is a small but significant part of the population that like the internet.

You need a good internet offer and sainsbury has that.

I am really surprised that you say a small amount of the population, because i am addicted to it.

Just to put it in context, the increase of these sales last year is greater than turtle sales.

That is incredible.

I am in the minority, but a good minority.

What about sainsbury?

Christmas is the holy grail for any kind of supermarket.

Rex -- there are always winners and losers and it tends to be the same people year after year.

The occasion shopping, people want to be sure they are buying the right products.

Marks & spencer always does well at christmas.

Sainsbury is another one that is typically a winner.

People will trade away from their normal supermarket to get a few specialized items in sainsbury's. the world of supermarkets is cutthroat.

Charles allen of bloomberg industries.

It is a record in the art world.

A set of paintings by francis bacon of his friends sold yesterday for $142 million in new york.

After six minutes of bidding, it became the most expensive piece ever to be sold at auction.

Christie's would not disclose the buyer's identity.

Final thoughts on next.

?

This text has been automatically generated. It may not be 100% accurate.

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