After reporting that like-for-like sales dropped for a fifth consecutive quarter, Sainsbury’s said that it expects the market to “remain challenging”.
Figures released today showed that stores that have been open for up to a year saw sales drop 1.9% excluding fuel and 3.9% including fuel, due to the supermarket taking action to “improve competitiveness”, including reducing the prices on over 1,000 of its most popular products.
However on a positive note Sainsbury’s shares increased by 1.5% as the results were better than anticipated.
Sainsbury’s also reported that despite a drop in food sales, performance in its general merchandise and clothing divisions were strong with sales increasing more than 6% compared with 2014.
In a statement, chief executive Mike Coupe said: "The trading environment remains challenging and the decisions we have taken to improve our competitiveness are reflected in our quarterly performance.
“Since we announced our strategic review in November we have lowered the regular prices of over 1,100 products, ensuring our price position relative to our major competitors has never been stronger. In addition, we have absorbed record levels of food deflation in categories where we trade most strongly- produce, dairy, fresh ready meals, meat, fish and poultry - allowing customers to continue to Live Well for Less at Sainsbury's.”
