Sainsbury's shares drop

Financial squeeze hits the third biggest supermarket group in the UK.

Shares in Sainsbury's fell by around 6 per cent it was revealed.

Growth has not been as high as expected for the supermarket, with only a 1 per cent increase in like-for-like sales in fourth quarter, against 3.6 per cent growth in the previous quarter.

Chief executive Justin King in explation said that consumers were "facing fuel price inflation, uncertain employment prospects and government spending cuts".