UK supermarket operator Sainsbury's has admitted it is considering moving out of its glamorous central London headquarters as part of a cost cutting campaign.

Analysts have for some time been pondering whether third-placed supermarket group Sainsbury's might be tempted by the considerable savings that could be made if it moved out of the its HQ building. Neither Asda nor Tesco, the company's two more successful grocery rivals, operate headquarters in London.

Sensible it may be, but an exit from the elegant Holborn site would represent something of a comedown for the group, which only moved there three years ago. It is reported that following staff cutbacks parts of the building are now unoccupied.