LONDON, April 28 (Reuters Breakingviews) – Concise insights on global finance.

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ON THE TURN. UK grocers’ pandemic heyday is nearing the end of its shelf life. J Sainsbury (SBRY.L)reported a 39% fall in operating profit for the year to March 6 after splurging 485 million pounds covering staff absences, buying protective gear and installing things like plastic barriers around check-outs. The extra charges and its decision to forgo business-rates relief wiped out most of the benefits of a 7.8% surge in its grocery business. Sainsbury’s shares dropped nearly 3%.

Top line growth is looking vulnerable. As the economy reopens, punters will have reduced need for big shops, which will put pressure on sales. They are also likely to return to the bargain aisles of German discounters Lidl and Aldi, which failed to boost market share during lockdowns due to an absence of online delivery options. Sainsbury’s shares are still up 7% from their pre-pandemic levels. But with stubbornly high costs and the threat of stalling revenue, that performance may be on the turn. (By Aimee Donnellan)

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| Editing by Ed Cropley and Karen Kwok

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