Sainsbury’s has an announced a strategic review of the business after recording its worst half-year performance in more than a decade.
The supermarket chain made a loss before tax of £290m in the 28 weeks to 27 September, in sharp contrast to profits of £433m during the same period last year.
It slumped into the red after taking a one-off charge of £628m to pull out of building 40 new supermarkets and downgrading the value of 40 underperforming stores.
In an interim statement released today, the supermarket chain said it will invest £150m in price cuts to tackle the discounter challenge led by Aldi and Lidl.
It also plans to improve the quality of 3,000 own-brand products, trial new store format and grow its non-food business with a focus on design-led clothing.
“Over the next five years, around 25% of our store portfolio will have some under-utilised space which can be used to expand our non-food offer or for other purposes such as carefully selected concession partnerships,” the supermarket said.
Sainsbury’s CEO Mike Coupe said: "We have examined every aspect of our business and we have good foundations for future growth in our supermarket and convenience estates, our online and non-food businesses and in Sainsbury’s Bank. However, we need to make sure that we are investing in the right areas and by reducing our costs and capital expenditure we are ensuring that we have the resources to enable us to do so.
"We will continue to differentiate ourselves from a position of strength by offering great products and services at fair prices, investing in the quality of our food and investing in price in areas where our customers tell us it matters most,” he added.