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| Sainsbury's sales fall for first time in nine years | Sainsbury's sales fall for first time in nine years |
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| Sainsbury's sales have fallen for the first time in nine years in what the supermarket group said was the slowest market for almost a decade. | Sainsbury's sales have fallen for the first time in nine years in what the supermarket group said was the slowest market for almost a decade. |
| Sales at stores open a year fell 3.1%, excluding fuel, in the three months to 15 March and sales at all stores dropped 1%, ending a run of 36 quarters of growth under departing chief executive Justin King. | Sales at stores open a year fell 3.1%, excluding fuel, in the three months to 15 March and sales at all stores dropped 1%, ending a run of 36 quarters of growth under departing chief executive Justin King. |
| King, who leaves in July after leading Sainsbury's for 10 years, admitted the sales fall was "disappointing" and that Sainsbury's had been caught out by shoppers' restraint and late Easter shopping. | King, who leaves in July after leading Sainsbury's for 10 years, admitted the sales fall was "disappointing" and that Sainsbury's had been caught out by shoppers' restraint and late Easter shopping. |
| "The market has been significantly softer since Christmas. We probably underestimated the impact of Easter being later and [that] customers would hold back until the very last minute for Easter." | "The market has been significantly softer since Christmas. We probably underestimated the impact of Easter being later and [that] customers would hold back until the very last minute for Easter." |
| He said Sainsbury's had maintained its market share at 17% in the weakest market for grocery sales since 2005 and that he was unconcerned about talk of a price war between the big grocers. | He said Sainsbury's had maintained its market share at 17% in the weakest market for grocery sales since 2005 and that he was unconcerned about talk of a price war between the big grocers. |
| "Grocers more generally have found growth hard to come by in recent years and the pricing pencil is being sharpened but it was ever thus." | "Grocers more generally have found growth hard to come by in recent years and the pricing pencil is being sharpened but it was ever thus." |
| Last week Morrisons pledged to spend £1bn over three years to take on German discounters Aldi and Lidl, which have attracted mainstream shoppers with low prices on basic goods. | Last week Morrisons pledged to spend £1bn over three years to take on German discounters Aldi and Lidl, which have attracted mainstream shoppers with low prices on basic goods. |
| King said Morrisons' boss Dalton Philips was wrong to say the grocery sector was in its biggest shakeup since the 1950s. | King said Morrisons' boss Dalton Philips was wrong to say the grocery sector was in its biggest shakeup since the 1950s. |
| He said: "You won't be surprised to hear I don't share that assessment. Dalton was commenting on Morrisons' results, which represent a number of years of falling sales." | He said: "You won't be surprised to hear I don't share that assessment. Dalton was commenting on Morrisons' results, which represent a number of years of falling sales." |
| King said the market was tougher during the recession of the early 1990s when discounters such as KwikSave had more of the market and unemployment was higher. | King said the market was tougher during the recession of the early 1990s when discounters such as KwikSave had more of the market and unemployment was higher. |
| "It always feels like the experience you are having today is something new and unique." | "It always feels like the experience you are having today is something new and unique." |
| Unlike Morrisons, which shocked investors with its second profit warning of 2013, Sainsbury's made no change to its guidance on profit. Commmercial director Mike Coupe, who will take over from King, said: "Given we are not commenting today, we don't expect to see [City analysts'] consensus change." | |
| Sainsbury's also blamed last year's horsemeat scandal for falling sales because Sainsbury's gained sales a year ago when its rivals' products were found to contain horse. | Sainsbury's also blamed last year's horsemeat scandal for falling sales because Sainsbury's gained sales a year ago when its rivals' products were found to contain horse. |
| Sainsbury's managed to increase like-for-like sales throughout the economic downturn as Tesco and Morrisons were pressured by the German value chains at one end and the rise of upmarket Waitrose at the other. | Sainsbury's managed to increase like-for-like sales throughout the economic downturn as Tesco and Morrisons were pressured by the German value chains at one end and the rise of upmarket Waitrose at the other. |
| He said Sainsbury's own brands and its convenience stores meant it could take on the German value chains at their own game. | He said Sainsbury's own brands and its convenience stores meant it could take on the German value chains at their own game. |
| King said the outlook was improving with inflation easing the strain on household budgets but that trading would stay difficult. | King said the outlook was improving with inflation easing the strain on household budgets but that trading would stay difficult. |
| "Although some economic indicators are showing an improvement in the health of the economy, we expect the outlook for customers to continue to be challenging for the coming year," King said. | "Although some economic indicators are showing an improvement in the health of the economy, we expect the outlook for customers to continue to be challenging for the coming year," King said. |
| Sainsbury's shares fell more than 1% in early trading but recovered to rise 0.3% to 312p. | Sainsbury's shares fell more than 1% in early trading but recovered to rise 0.3% to 312p. |