Sainsbury’s sales plunge as prices race to the bottom

Grocery price war sending shivers down executives’ spines

Sales at J. Sainsbury’s slipped by 2.1% over the first quarter, the sixth consecutive fall for the supermarket chain.

According to consumer research group Kantar Worldpanel, Sainsbury’s is currently the second-worst performing supermarket of the big four, after Asda.

Sainsbury’s has been hit hard by the ongoing price war, which has seen more and more customers turn to discount supermarkets Aldi and Lidl. Meanwhile Tesco is also on the warpath as it rebuilds under new boss Dave Lewis after a scandal-filled 2014.

In a statement, Sainsbury’s chief executive Mike Coupe said: “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.”

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