Sainsbury’s this morning (March 26) reported a 0.2 per cent fall in like-for-like sales for the January to March period when compared with last year.
The UK’s number three supermarket chain has warned its profits will fall short of last year's. The results fell short of analyst expectations - a small increase was thought likely because last winter was particularly disappointing.
Sainsbury's total sales rose 0.8 per cent during the three-month period, but the group admitted its bottom line is feeling the strain of intense competition in the marketplace.
"There was a significant increase in price competition as the food retail market place reacted in anticipation of Morrison's acquisition of Safeway," said a statement.
freshinfo reported yesterday that Sainsbury’s chief executives present and future Sir Peter Davis and Justin King had disagreed on the tenor of the reporting of the results. They signal the end of Sir Peter’s rocky ride in the hotseat, and he was determined to put across a positive perspective.
He said: "It's been a tough year for Sainsbury's. When our modernisation programme is behind us we will be in a position to invest more in price and quality in order to drive sales growth."
Former M&S man King takes the helm charged with reinvigorating Sainsbury’s business and position within the UK retail pecking order.
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