Sainsbury sees first ‘green shoots’ of recovery

Supermarket group J Sainsbury predicted a return to outperforming the UK sector after the first improvement in sales volume for more than a year.

The grocer is seeing the first "green shoots" of recovery in terms of the number of products sold, chief executive Mike Coupe said today on a conference call, although revenue continues to decline amid record deflation, as food retailers cut prices to keep up with discounters Aldi and Lidl.

Like its three largest competitors, Sainsbury is losing market share as more Britons turn to the budget chains.

Sainsbury said sales at stores open at least a year fell 1.9 per cent in the 10 weeks to March 14th, excluding petrol. That beat average analyst estimates.

Like all its main competitors,

"With volume now returning, we see that Sainsbury's can continue to keep margins healthy," said Bruno Monteyne, an analyst at Sanford Bernstein. "Unlike peers, Sainsbury's has managed to hold on to its margins." – (Bloomberg)