Sainsbury's profits climb

Sainsbury’s pre-tax profits climbed 6.6 per cent to £354 million for the 28 weeks to 1 October, the retailer announced this week.

The number of shopper transactions is up almost one million on last year to nearly 22m a week implying that customers are visiting more often, even if they are buying less at each visit.

Sales for the six-month period excluding fuel were up 1.9 per cent.

Justin King, chief executive, said: “Our further good sales growth reflects our continued hard work to help our customers cope with the tough economic environment. They are recognising the efforts we are making to help them manage their budgets and to Live Well For Less.”

Sainsbury’s has also signed a groundbreaking contract to send all its food waste to anaerobic digestion plants around the country to be turned into energy.

The three-year deal with Biffa will see waste collected from Sainsbury’s distribution centres around the UK used to power homes and businesses.

It makes the supermarket the largest retail user of anaerobic digestion in the UK.

Currently, none of the food waste from Sainsbury’s distribution supermarkets is sent to landfill, but some of it goes to other waste from energy processes.

Neil Sachdev, Sainsbury's property director, said: "Anaerobic digestion is the most efficient way to create energy from waste, so this new contract means our food waste is being put to the best possible use.

"It has taken quite some time for us to get into a position where we are able to send all of our food waste to AD due to a lack of facilities in the UK.

“However, I am pleased to see that the waste industry is catching up with demand for this green technology.”

Sainsbury’s attempts to limit its food waste through stock control and sales forecasting. Any surplus food that is fit for consumption is sent to local charities and organisations.

John Casey, director of engineering and quality at Biffa, said: "Our food waste collections are giving the company a real boost to help it meet its environmental targets."

Every year, the UK throws away around 15 million tonnes of food waste (source: Defra/WRAP) and it is thought that around half of this comes from businesses.