This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-33075097
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Sainsbury's sales fall for sixth consecutive quarter | Sainsbury's sales fall for sixth consecutive quarter |
| (35 minutes later) | |
| Sainsbury's has seen sales drop for the sixth straight quarter in what it says is a "highly competitive" market. | Sainsbury's has seen sales drop for the sixth straight quarter in what it says is a "highly competitive" market. |
| The supermarket said like-for-like sales excluding fuel fell 2.1% in the 12 weeks to 6 June, slightly better than expectations. | The supermarket said like-for-like sales excluding fuel fell 2.1% in the 12 weeks to 6 June, slightly better than expectations. |
| Including fuel, sales fell 3.7%. Sainsbury's recently opened its 300th petrol station. | Including fuel, sales fell 3.7%. Sainsbury's recently opened its 300th petrol station. |
| Chief executive Mike Coupe said trading conditions were also "being impacted by strong levels of food deflation". | |
| The firm said volume and transactions continued to grow, while it also remained committed to delivering its cost savings programme. | |
| Low-cost rivals | |
| Last month the grocer reported its first full-year loss for 10 years as competition within the UK grocery market continued, and warned the outlook for the rest of the financial year would "remain challenging". | Last month the grocer reported its first full-year loss for 10 years as competition within the UK grocery market continued, and warned the outlook for the rest of the financial year would "remain challenging". |
| Those results were hit by a number of one-off costs, including a write-down in the value of some of its stores. | Those results were hit by a number of one-off costs, including a write-down in the value of some of its stores. |
| In the previous quarter, sales had fallen by 1.9%, again due to price cuts and food deflation. | In the previous quarter, sales had fallen by 1.9%, again due to price cuts and food deflation. |
| Sainsbury's is the UK's third largest supermarket chain by annual revenue, after Tesco and Wal-Mart-owned Asda. | Sainsbury's is the UK's third largest supermarket chain by annual revenue, after Tesco and Wal-Mart-owned Asda. |
| Supermarkets in the UK are battling to win back market share from cheaper rivals Lidl and Aldi. | |
| Aldi recorded a record gain of market share over the last year, while Tesco, Asda, Sainsbury's and Morrisons all experienced a decline in sales, according to Kantar Worldpanel. | |
| 'Discount menace' | |
| Bryan Roberts, an analyst at Kantor Retail, said: "On the face of it, a sixth consecutive quarter of declining like-for-likes is an obvious disappointment, indicative of the fact that Sainsbury's immunity to the discount menace is well and truly over. | |
| "With Morrisons back on the front foot and Tesco and Asda continuing to spar on pricing, things certainly won't be getting any easier. | |
| "However, the retailer has made some courageous moves on range, stores and promotion and we continue to assert that the Sainsbury's cloud has more silver lining than some." |