Sainsbury’s like-for-like sales fell by 0.5 per cent during the nine weeks to 11 March 2017 due to a competitive market and ongoing uncertainty over cost price pressures.
The retailer said it has seen a “solid food performance” and good growth at newly-acquired Argos, but CEO Mike Coupe warned that the impact of price pressures remains uncertain.
Online groceries grew by seven per cent, while the retailer’s convenience business saw total sales grow by nearly seven per cent with ten openings during the quarter.
Coupe said: “The market remains very competitive and the impact of cost price pressures remains uncertain. However, we are well placed to navigate the external environment and remain focused on delivering our strategy.”
“We continue to simplify Sainsbury’s trading strategy in favour of lower regular prices. We have reduced promotional participation, lowering operating costs and cutting food waste,” he added.
Sainsbury's has also expanded its prepared vegetable range during the quarter, with new products including butternut squash waffles and sweet potato tagliatelle, as well as additions to the ‘free from’ range in bakery.
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