Sainsbury's - still not very good
Seems like Sainsbury's can't get a thing right at the moment, as they reported a fall in sales for the fifth consecutive quarter. If you've been in a Sainsbury's recently, you'll know how rubbish they are, so this won't surprise many.
The supermarket said that like-for-like sales fell by 1.9% in the 10 weeks to March 14th, which in fairness, was better than analysts expected, but it is still a drop on top of four previous drops, which is never a good sign.
As ever, the cause of this is people buying stuff online and going to Aldi and Lidl instead. Not to mention the supermarket mantra about how the high street is now 'challenging'. Sainsbury's have dropped the price on over 1,000 products, but alas, so is everyone else and consumers have the air of 'stop looking so desperate' at a lot of the shops.
Mike Coupe, the new chief executive last year, said: "The trading environment remains challenging and the decisions we have taken to improve our competitiveness are reflected in our quarterly performance. Since we announced our strategic review in November we have lowered the regular prices of over 1,100 products, ensuring our price position relative to our major competitors has never been stronger. In addition, we have absorbed record levels of food deflation in categories where we trade most strongly - produce, dairy, fresh ready meals, meat, fish and poultry."
"We expect the market to remain challenging for the foreseeable future. Food deflation is likely to persist for the rest of this calendar year, and competitive pressures on price will continue. However, we believe that the great value and quality of our products, combined with a strong focus on developing our multi-channel offer, will enable us to outperform our supermarket peers."
Sainsbury's can worry about discounter supermarkets all they want, but they have a bigger problem in the shape of Tesco, who look like they're powering out of their slump. They're going to have to work out what they are if they're going to get motoring again. Not as nice as Waitrose or Marks and Spencers and not as cheap as other supermarkets - they need an angle, and fast.