Darren Hepworth, director of global trading at TD Direct Investing:

“Over the last week there was a threefold increase in TD customer trading in Sainsbury’s shares in anticipation of the results. We’ve seen the stock trade within an 11 per cent high/low range, representing approximately 0.30 pence movement per share. The results set the expectation for a continuing trend of negative sales across the sector in the next few years.”

Darren Shirley and Clive Black of Shore Capital:

“Despite the greater visibility on Sainsbury’s strategic plans, we continue to believe that much of Sainsbury short and medium term prospects will remain dependent upon the magnitude of the much anticipated Tesco price reset. Whilst we applaud Sainsbury greater capital discipline, the focus on debt reduction and strengthening the group’s balance sheet – we struggle to forecast future years with confidence. We therefore retain our neutral hold stance.”

Ian Enslin, charity director at Waverton Investment Management:

“There is significant value in the big four food retailers, but they are lumbered by a cost base which can no longer be justified by the lack of growth and an imminent and inevitable price war under which they will suffer. Sainsbury’s has to make a choice now as to whether it is going to attempt to compete in the bargain basement on price or re-shape it’s business from the ground floor upwards to create a sustainable retailer shoppers want to visit over the long-term.

“Cost cutting will follow, as will greater discipline in its investment decisions, but more radical management is needed before Sainsbury’s has any opportunity of regaining market leadership. For this, shareholders will have to accept a long period of low returns and high investment.”