Sainsbury predicted no let-up in the difficulties facing the UK supermarket industry, taking the shine off a better-than-expected Christmas quarter.

Tesco will reveal a steep fall in half-year profits next week in the wake of a catalogue of disasters including a £250m accounting error that has seen eight of its executives suspended.

Britain’s biggest supermarket Tesco is expected to post a third successive quarter of worsening sales when latest trading figures are published tomorrow.

Mothercare has warned it will miss profit expectations after fierce Christmas discounting left it nursing a big drop in UK sales.

Tesco’s recovery plans will come under more scrutiny tomorrow when it delivers half year results amid mounting pressure on its market share in Ireland and the UK.