Sainsbury’s to reveal how profits have been hit by supply chain and inflation

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Sainsbury’s is set to reveal how badly profits have been hit by supply chain strains and inflation pushing up costs across the business. We remain a little concerned as to how Argos maybe facing into higher freight costs and the possibility of lost sales due to cargo not landing in the UK Clive Black, Shore Capital But inflation and strains across the supply chain are expected to begin biting into profit margins. If it doesn’t, the extra costs associated with adding online capacity add up to another drag on margins.” Sainsbury’s chief executive Simon Roberts wrote to customers yesterday to reassure them that there would be plenty of products available in stores this Christmas despite the challenges in the supply chain. Clive Black and Darren Shirley, analysts at Shore Cap, said: “We remain a little concerned as to how Argos maybe facing into higher freight costs and the possibility of lost sales due to cargo not landing in the UK in time for Q4 FY22.” Investors will also be watching the performance of Sainsbury’s Bank closely after bosses rebuffed interest from potential buyers in September.