British grocer J Sainsbury confirmed a fall in annual profits this morning as new chief executive Mr Justin King takes on the challenge of reviving sales and improving competitiveness.
In a profit warning in March the company told investors to expect two years of lower profits as Mr King, only seven weeks into the job, attempts to stem a steep loss of market share.
"We have not stayed as sharp on pricing as we should have done," Mr King said today.
Underlying group profits before tax slipped 2.9 per cent last year to £675 million sterling, as anticipated. Supermarket turnover rose 2.2 per cent to £15.3 billion pounds.
But operating profits at the core supermarket chain fell 12.2 per cent in the second half of the year due to disappointing sales and increased price competition.
Mr King, a former M&S and Asda executive, began cutting prices earlier this month and said it was the first step in a "much longer journey".
Shares in the company rose 1.2 per cent to 273p having underperformed UK sector peers by 11 per cent in the last six months.