Sainsbury's sales slowed in the fourth quarter but the retailer said it has been a “strong year” for the business.
Sainsbury’s reported a 1.7 per cent rise in fourth quarter sales as growth continued to slow, as like-for-like sales fell from 3.7 per cent the previous quarter.
The products assessed for the 11 weeks to 20 March were up against tough comparatives from a year earlier and full-year same store sales rose by 4.3 per cent.
But the group warned that the consumer spending environment would remain challenging over the year ahead.
Sainsbury's has reported slowing sales growth since the first quarter of 2009, as easing food price inflation and cautious consumer spending has compounded the challenge of reporting against strong comparatives. A year ago it grew sales by 6.2 per cent.
After supermarkets were hit by adverse weather in January and a clampdown on spending after Christmas, analysts had expected them to be harder hit than has proved the case.
Sales in the group's online offering rose 15 per cent, while it confirmed further growth for its non-food ranges - at three times the rate of food.
It is thought that consumers have also been cutting back ahead of the general election and expected tax hikes, while Sainsbury's has had the added headache of increased competition from a resurgent Waitrose.
Justin King, chief executive of Sainsbury's, said: "While we expect the consumer environment to remain challenging in 2010, our universal customer appeal together with our accelerated growth of space for new supermarkets, extensions and convenience stores means we are well placed to make continued good progress in the new financial year."
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