Sainsbury's to Close Warehouses Amid Profit Pressure

Sainsbury's reported a 7.2% increase in annual profits, with underlying operating profit reaching £1.036 billion and sales rising to £26.6 billion. The company expects flat or slightly lower profits next year due to rising costs and intensifying price competition from rivals such as Tesco and Asda. To cut costs, Sainsbury's plans to close two of its five non-food warehouses, aiming for £70 million in annual savings, and will further invest in self-service technology. The retailer has announced at least £200 million in share buybacks and a £250 million special dividend following the sale of its banking business. Despite recent gains, Sainsbury's anticipates a challenging retail environment due to potential price wars and higher labor costs. The company remains focused on maintaining its market position and delivering value to consumers.