Supermarket giant Sainsbury's lifts its profit target despite a £164m loss while its boss warns 'many households are finding things tough'

The bottom of Sainsbury's full-year profit range has jumped from £965m to £1.025bn, with the top end at £1.065bn. Sales growth is cooling: like-for-like sales slowed from 2.3 to 1.2 per cent in the three months to September. The half-year loss stems from offloading Argos, while underlying pre-tax profit rose five per cent to £366m.

Argos was sold to Swift Partners in July for just £120m.

Chief executive Simon Roberts says the sale creates a 'simpler, more focused Sainsbury's'.

Upmarket Taste the Difference sales grew more than six per cent despite households feeling the pinch.