British grocer Sainsbury's said it would rein in spending on new stores and find more cost savings to finance price cuts as it seeks to cope with the toughest market conditions for decades. 

Announcing the results of a strategic review, Sainsbury's maintained its interim dividend but said profitability would be lower in the second half of the year than the first half. 

Sainsbury's posted a profit before tax and one off items of £375m for the six months to September 27. 

This was ahead of analysts' expectations of about £350m but down from £400m the same time last year.