Sainsbury’s sales fall in ‘tough’ first quarter

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Sainsbury’s like-for-like sales fell by 1.6% in the first quarter, as the grocer struggled in what it described as a “tough market”.

Total retail sales at the grocer were down 1.2% and grocery sales were down 0.5% in the weeks to June 29, 2019.

It also saw a 3.1% decline in its general merchandise sales and a 4.5% decline in clothing sales.

Sainsbury’s said it managed to grow its convenience and online channels during the first quarter, up 1.5% and 5.1% respectively.

The grocer said it continued to grow market share in premium food with its Taste the Difference range and flagged that it had reduced prices on more than 1,000 own-brand items since February.

It also said it refurbished 84 supermarkets in the first quarter and would finish improving 200 more by the end of the first half.

Chief executive Mike Coupe said: “We continue to adapt our business to changing shopping habits and made good progress in a challenging market. We reduced prices on over 1,000 everyday food and grocery products and improved our relative performance. Our premium Taste the Difference ranges are growing market share and we continue to improve customer service and availability. In a tough trading environment, we gained market share in key general merchandise categories and in clothing where we are now the UK’s fifth-largest retailer by volume.

“We will invest in 400 supermarkets this year, including adding an enhanced beauty offer in 100 stores. We are accelerating investment in technology: 148 supermarkets now have SmartShop self-scan, 206 Argos stores offer Pay@Browse and we upgraded 29 more Argos stores to digital formats, all helping to make shopping with us quicker and easier.

“In May, we celebrated Sainsbury’s 150th birthday. Our focus on giving customers high-quality products at good value remains as true today as it was 150 years ago.”