THE future of two new Sainsbury’s stores for Pembrokeshire hang in the balance as the supermarket chain reviews its UK plans.

The company is reining back its plans for new stores across the country as part of plans to fund cheaper prices to improve sales.

Sainsbury's will invest an additional 150 million pounds on lower prices in targeted products such as nappies over the next 12 months, meaning profitability will be lower in the second half of its financial year than in the first.

It will fund the reductions through cost savings of 500 million pounds over the next three years and a reduction in capital expenditure to 500-550 million pounds a year over the next three years, down from 888 million pounds in 2013-14, it was reported on Wednesday.

It is not yet known which Sainsbury’s store developments will be mothballed.

When asked about Haverfordwest and Narberth a spokesman said: “We are reviewing our plans across a number of supermarket sites, including Haverfordwest. Once we are in a position to do so, we will update people on our future plans.

“We are still in negotiations to open a Sainsbury’s Local in Narberth, as part of a wider development.”