Sainsbury's has put on a brave face and emphasised its progress despite disappointing first-quarter sales figures.
The supermarket, whose merger with Asda was rejected by competition authorities earlier this year, reported total sales excluding fuel down 1.2 per cent in the 16 weeks to 29 June, with like-for-like sales falling 1.6 per cent. Grocery sales declined 0.5 per cent, general merchandise 3.1 per cent and clothing 4.5 per cent.
Chief executive Mike Coupe stressed that the highly competitive and promotional nature of UK retail, combined with an uncertain consumer outlook, is likely to continue to impact performance going forward.
There were reasons to be positive in core food, with the food performance relative to the market improving over the quarter and market outperformance on premium Taste the Difference lines. The supermarket has also reduced prices on more than 1,000 core fresh lines and introduced 33 new plant-based SKUs.
“We continue to adapt our business to changing shopping habits and made good progress in a challenging market,' said Coupe. 'We will invest in 400 supermarkets this year, including adding an enhanced beauty offer in 100 stores. We are accelerating investment in technology: 148 supermarkets now have SmartShop self-scan, 206 Argos stores offer Pay@Browse and we upgraded 29 more Argos stores to digital formats, all helping to make shopping with us quicker and easier.
“In May, we celebrated Sainsbury’s 150th birthday. Our focus on giving customers high-quality products at good value remains as true today as it was 150 years ago.”
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