Sainsbury’s hit by falling food prices

Sainsbury’s has reported a fall in annual profits as the supermarket price war continued to hurt the retailer.Underlying profits, which strip out one-off charges, fell to £587m for the year to 12 March. That was down from £681m in the previous year.
Pre-tax profits for the year were £548m, reversing last year’s £72m loss. That result was hit by charges related to the falling value of its properties.
In April, Sainsbury’s agreed to buy Argos-owner Home Retail Group.
Sainsbury’s has been suffering from the battle among supermarkets to cut prices and said that tough environment was unlikely to change anytime soon.