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-31918765
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Sainsbury's warns market 'remains challenging' | Sainsbury's warns market 'remains challenging' |
(35 minutes later) | |
Sainsbury's has warned it expects the market to "remain challenging for the foreseeable future" after reporting a drop in like-for-like sales for a fifth consecutive quarter. | |
It said sales at stores open at least a year fell 1.9% excluding fuel in the 10 weeks to 14 March. | |
Total sales fell 0.3% as price cuts and food deflation both affected trading. | |
Sainsbury's said the drop in sales reflected decisions the group had taken to "improve our competitiveness". | |
At the start of the year, Sainsbury's said it would cut the prices of 1,000 of its most popular products as part of a £150m programme announced in November. | |
It said it had now reduced prices on more than 1,100 items, resulting in an average sales increase of 3% on these products. | |
But it said a combination of food deflation, which it expected to continue for the rest of the year, and competitive pressures on price meant the outlook remained challenging. | |
The "big four" supermarkets, which also includes Tesco, Asda and Morrisons are engaged in a bitter price war as they battle for customers. | |
A combination of increased competition from discounters Aldi and Lidl, customers shopping around for bargains and a switch to convenience stores and online shopping has hit all of the main supermarkets. | |
However, Sainsbury's said that its general merchandise and clothing business had performed strongly, with sales up more than 6% on last year. | |
It also said its convenience store sales, an area supermarkets are increasingly focusing on, were strong with sales up 14%. |