Sainsbury’s nine-year run of sales growth comes to an end

Grocer had reported sales growth for 36 straight quarters

Sales at stores open over a year fell 3.1 per cent during Sainsbury’s fourth quarter
Sales at stores open over a year fell 3.1 per cent during Sainsbury’s fourth quarter

British supermarket chain J Sainsbury has ended a nine-year run of quarterly sales growth, underlining sluggish trading momentum for the country's major grocers in the early months of 2014 and reflecting a tough comparative figure last year.

The group, which trails market leader Tesco and is battling with Wal-Mart Stores' Asda to be the UK's second biggest grocer, said sales at stores open over a year fell 3.1 per cent, excluding fuel, in the 10 weeks to March 15th, its fiscal fourth quarter.

That compared to a rise of 3.6 per cent in the same period last year, analysts’ forecasts in a range of down 2-3 per cent and growth in the third quarter of 0.2 per cent.

Prior to the fourth quarter Sainsbury’s had reported like-for-like sales growth for 36 straight quarters.

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The firm’s total fourth quarter sales fell 1.0 percent, excluding fuel.

Sainsbury’s said it was confident it would outperform peers in the year ahead.

Reuters