Sainsbury's has stalled and is proving tough to turn around

The new staff will be used to keep shelves better stocked and give shoppers a better service, according to the Sunday Telegraph and the Observer.

Sainsbury's is also planning to cut hundreds of management jobs, they said.

The grocer gave a third profit warning of the year last week and boss Justin King is expected on Tuesday to unveil plans to turn the company around.

Rumour mill

Press reports have been full of speculation about what Mr King is planning to do to stop Sainsbury's losing market share to rivals including Tesco and Asda.

The Observer said on Sunday that the company is set to take "a savage axe to managerial jobs", slashing as many as 700 jobs at its Holborn offices.

In previous weeks some reports have claimed that Mr King will slash the company's dividend payment to shareholders, using the saved cash to cut prices and improve food quality.

They (Sainsbury's) are massively uncompetitive Richard Ratner, retail analyst at Seymour Pierce Click for Sainsbury's share price

Others have claimed Mr King will warn that any turnaround is likely to take three years and that he will have to write off millions of pounds of investments.

Sainsbury's declined to comment on the press reports when contacted by BBC News Online.

Whatever is set to be announced, what cannot be ignored is the fact that Sainsbury's is in trouble.

Ten years ago it was the UK's number one supermarket, both in terms of profitability and market share.

Today it is seen as a potential takeover target as earnings problems hammer its share price. Private equity firm Permira is often touted as a possible suitor.

For the six months to 9 October, Sainsbury's is now forecasting pre-tax profits of between �125m-�135m, compared with �366m a year earlier.

It will publish its second quarter and half-year trading statements on 19 October, at the same time as Mr King unveils his plans.