Sales Fall again in Sainsbury

The chain reported same store sales excluding fuel down a worse-than-expected 2.1% in the 12 weeks to June 6, which comes on top of a 1.9% drop in the previous three months.

Sainsbury's remains under pressure from falling UK food prices and as the big four grocers engage in fierce competition amid a scramble for market share, which is being eaten away by discounters Aldi and Lidl.

 

Sainsbury's chief executive Mike Coupe, who took over from long-standing predecessor Justin King last July, unveiled a wide-ranging plan to fight back against the discounters in November which included price cuts to 1,100 items and improvements in quality to 3,000 own-brand products.

UK Inflation Figures shows Lower Cost of Living

It is the first time Consumer Price Index (CPI) inflation has turned negative since 1960, based on comparable historic estimates, the Office for National Statistics said.

The biggest contribution to the fall came from a drop in air and sea fares.

Bank of England governor Mark Carney said he expected inflation to remain very low over the next few months.