This is what happened
In the first nine weeks of the year Sainsbury’s has seen its sales decline. However, it recently obtained retail chain Argos which has reported a strong growth.
Like-for-like sales, this doesn’t include new stores, fell by 0.5 per cent in the period to the 11 March.
In morning trade, sales fell one per cent to 268.9p and are down four per cent over the past 12 months.
The Argos chain has seen its sales rise by 4.3 per cent. The supermarket bought Argos last year as part of a £1.4bn takeover.
Sainsbury’s has said the market remains ” very competitive”.
Neil Wilson of ETX Capital said: “Sainsbury’s did very well when Tesco and others were struggling but is now facing its own challenges. It must contend with all the sector-wide problems like falling margins and the sterling squeeze from suppliers,”
“Falling margins and profits don’t look great when the market is growing.”