Sainsbury's (2)

Sainsbury's has reported a 42% drop in pre-tax profits for its last financial year, largely driven by a fall in like-for-like sales over Christmas.

Sales for the final quarter dropped 0.9%, while sales over the Christmas period were down 1.1% on the same period last year.

The supermarket also revealed that its failed bid to merge with Asda cost the company £46 million. Other one-off costs included £81m for restructuring and £118m for defined benefit pension expenses.

Sainsbury's chief executive, Mike Coupe, told the BBC: "Well, we draw a line under the past... The authorities blocked the [Asda] deal, but we think our business is adapting to the changing world of retail, and we will carry on investing in our business."

Mr Coupe added that the supermarket will invest in 400 of its stores, with a particular focus on online sales.