Sainsbury’s has reported a drop in like-for-like sales for a fifth consecutive quarter and says the market will “remain challenging for the foreseeable future”.
The supermarket chain said early this year that it would cut the prices of 1,000 of its most popular products as part of a £150m programme. Prices have now been reduced on more than 1,100 items, resulting in an average sales increase of 3% on these products.
Sainsbury’s says the outlook remains “challenging” but its general merchandise and clothing business are performing strongly, with sales up more than 6% on last year. Its convenience store sales are also strong with sales up 14%.
The supermarket has made a commitment to price match Tesco but competition is fierce from the likes of Aldi and Lidl as well as online shopping.