US grocer Albertsons said the five month-long industrial dispute with workers in southern California had hit full-year sales, pushed up costs and slashed pre-tax profit by 35%.

For the year to January 30, pre-tax profit fell to $906m from $1.4bn last year. Sales dipped 0.5% over the year to $35.7bn, but declined 6.5% to $8.4bn in the fourth quarter because of the industrial action.

Albertsons chief executive officer, Larry Johnston, said the company aimed to regain lost momentum by cutting prices and launched a “very aggressive plan” to regain lost customers after the strike.