Sainsbury's Warns of Lower Profits from Middle East Conflict

J Sainsbury Plc, Britain's second-largest grocery chain, warned on Thursday that the ongoing conflict in the Middle East will affect both its customers and operations, potentially leading to lower profits this financial year. The retailer, which operates stores across the UK including in Birmingham, echoed similar concerns raised last week by rival Tesco, citing rising energy costs and food inflation as key pressures.

Chief Executive Simon Roberts told reporters that the conflict, which began at the end of February, has heightened shoppers' focus on the cost of living. "The conflict in the Middle East means customers are even more focused on the cost of living and we are absolutely committed to making sure everyone gets the best possible value when they shop with us," Roberts said. He emphasized the company's efforts to keep prices low through measures like its Aldi Price Match program, Nectar loyalty offers and investments in fresh food and supplier partnerships.

Sainsbury's expects the conflict to drive up energy prices, which in turn will increase food production costs during the UK's growing season. The Food and Drink Federation has projected food inflation could exceed 9...