Sainsbury's is expected to report a 25% increase in pre-tax profit when it releases its full-year results on Wednesday.

Analysts have predicted pre-tax profit will increase from £380m last year to around £480m.

However, there are concerns that the retailer will be hit by a downturn in the economy: “Investors will seek some reassurance about Sainsbury's ability to weather a more difficult environment without any erosion to its competitive position,” said analysts at UBS.