SAINSBURY’S revealed lower-than-expected sales growth today as the supermarket chain joined Tesco in warning of a “competitive” trading environment.
The company saw like-for-like sales excluding fuel rise 5.1% in the 12 weeks to June 16, below some analyst predictions of around 5.5%.
The performance comes a day after its larger rival Tesco disappointed the City with like-for-like sales growth of 4.7%.
Sainsbury’s said the recent round of price-cutting by rivals Tesco, Asda and Morrisons reflected the competitive nature of the market, but added that it had moved to cut prices on 4,500 products since April.
Supermarket chain Morrisons, which has 368 stores, has pledged to lower 2,000 prices, on top of the 3,000 cuts seen since January 1 this year.
Last week Asda revealed price reductions of £250m on some 10,000 items. Tesco then announced £270m worth of reductions on more than 3,000 products.