Home Breaking Sainsbury’s hit by sluggish first quarter growth

Sainsbury’s hit by sluggish first quarter growth

by Purvai Dua
4th Jul 18 9:53 am

The market remains competitive, added boss

Sainsbury’s sales growth in its latest quarter has slowed despite price cuts on meat, fruit and vegetables.

The UK’s second biggest supermarket said that retail like-for-like sales, excluding fuel, rose 0.2 percent in the 16 weeks to June 30, its fiscal first quarter.

Chief Executive Mike Coupe added: “Our price position has improved and customers have responded well, resulting in a continuation of the improved volume trend we saw in the second half of last financial year.”

The group, which agreed a £7.3bn takeover of rival Asda in April, also said that its merger with Asda will “create a more resilient and adaptable business for the future” and would not lead to store closures or job losses in stores.

Sainsbury’s has also agreed a financing package of £3.5bn for the deal.

“The market remains competitive. However, we have the right strategy in place and our proposal to combine Sainsbury’s and Asda will create a dynamic new player in UK retail,” added Coupe.

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