Sainsbury's results set to disappoint

Sainsbury's is predicted to reveal disappointing half-year figures this week after the group has failed to capitalise on this year's hot summer.

Chief executive Sir Peter Davis is expected to attempt to reassure investors that his strategy remains on track as the group is expected to announce that sales have risen by just over 0.2 per cent. Leaving the group way behind Tesco.

Investors are becoming increasingly impatient with the lack of progress since Davis was appointed in March 2000 and are beginning to question when they will see the results of the £2 billion investment programme.

One analyst pointed out that Tesco's stock replenishment systems are already more efficient than Sainsbury's will be when its programme is complete.

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