Supermarket group Sainsbury's has reported weaker than expected third quarter sales.
But Britain's third biggest grocer said its performance over the key Christmas trading period had been encouraging. Like-for-like sales during the quarter grew by just 0.1 per cent, as a major overhaul of the group's IT systems and distribution centres hit trading.
However, like-for-like sales rose 2 per cent in the four weeks to January 3, boosted by the company's core food ranges.
Sainsbury's has invested billions of pounds in modernising its UK stores, computer systems and depots as part of a major revamp which its says should be completed by March. Chief Executive Sir Peter Davis said: "The sheer volume of change is affecting our stores' performance."
Sainsbury's has also introduced a wider range of non-food products in a bid to pull in more customers and stem its sliding market share.
But the company's recent performance is likely to fall some way short of its main UK rivals. However, there was better news for Sainsbury's in the US, where its Shaw's chain of supermarkets reported total sales up 6.6 per cent.
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