Sainsbury's warns of £500m virus hit

​The retail giant said the impact of Covid-19 is expected to leave underlying pre-tax profits broadly flat for the year to March 2021, despite £450​m in business rates relief.

It has scrapped its final shareholder dividend and said decisions on further payouts would be deferred until later in the financial year - a decision which comes after rival Tesco faced criticism for paying out £635​m.

Sainsbury's ​also announced that its chief executive​ Mike Coupe ​will leave the firm on May 31​.

Sainsbury's full​ ​year results showed a 2​ per cent​ fall in underlying pre-tax profits to £586​m for the year to March 7.

On a statutory basis, pre-tax profits rose to £255​m from £202​m the previous year.

It saw total grocery sales jump 12​ per cent​ in the seven weeks to April 25, compared with a 2​ per cent​ rise in the final quarter of its previous financial year.

I​n a trading update, the firm said: "​The C​ovid​-19 pandemic has had a significant impact on our business since early March.

​"​We have had​ ​three clear priorities throughout: keeping our customers and colleagues safe; helping to feed the nation and​ ​supporting our communities and the most vulnerable in society.

​"​Our colleagues have played an incredible​ ​role and have really pulled together to serve our customers. In particular, our store colleagues, our​ ​distribution centre colleagues, our drivers and customer ​c​areline teams are working on the frontline,​ ​ensuring that customers have good access to food and other essential items.​"​