Sainsbury's sales on the slide again
Sainsbury's don't seem to be able to do a thing right at the moment, and again, they've seen their sales falling. In the first quarter, they dropped a further 2.1%. It is the second worst performing supermarket, after Asda, in the four weeks to May 24th.
Mike Coupe, Sainsbury chief executive, says: "Trading conditions are still being impacted by strong levels of food deflation and a highly competitive pricing backdrop. These pressures, including the effect of our own targeted price investment, have led to a fall in like-for-like sales for the quarter."
"Despite the challenging market conditions, we are confident that we are building on strong foundations and making good progress with our strategy."
Basically, thanks to dropping the prices on their own goods, that has had an unsurprising influence on their profits. However, they've still got problems as, well, no-one wants to shop there because it is rubbish. And what with Tesco regrouping, they've got to get their arses in gear.
Bryan Roberts, analyst at Kantor Retail, says: "On the face of it, a sixth consecutive quarter of declining like-for-likes is an obvious disappointment, indicative of the fact that Sainsbury's immunity to the discount menace is well and truly over."
"With Morrisons back on the front foot and Tesco and Asda continuing to spar on pricing, things certainly won't be getting any easier."