Sainsbury's sales on the slide

28 September 2016
Sainsbury's sales on the slide

They may have just announced one-hour bicycle delivery, but Sainsbury's sales are not great at the moment, falling for a second consecutive quarter.

The supermarket says this is because of the drop in food prices.

Chief executive Mike Coupe is optimistic though, saying that he's got a strategy which should mean that Sainsbury's "outperform our major peers".

Of course, as well as Sainsbury's, Tesco, Asda and Morrisons have all been having their sales chipped away at by the growing discount chains, Aldi and Lidl.

While they expand, the big guns are scratching their heads and wondering what they can do to get customers back through their doors.

In Sainsbury's case, they've stopped confusing their customers with promotions, and cutting prices on everyday products such as nappies, pizzas, and veg.

Of course, Sainsbury's have just bought out Argos owner, Home Retail Group, for £1.4 billion.

If they open Click & Collect points for Argos customers in their Sainsbury's outlets, then footfall is increased, and people might do more shopping there. Or they'll just pick up their Argos orders and leave without even looking around the supermarket.

We just don't know, but the idea is a sound one at least.

Either way, Sainsbury's have seen two years of falling profits, and it looks like they're set for another.

They have to reverse the trend or they'll find themselves in trouble. Shares in the company have dropped 9% over the past six months.

TOPICS:   High Street News

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