Supermarket giant Sainsbury’s has seen like-for-like retail sales fall as the grocer warns that the market remains ‘challenging’.
Sales dipped 0.8 per cent for the UK’s second largest grocer in the 12 weeks to June 4th.
The fall follows a positive previous quarter in which the retailer saw sales rise for the first time in two years.
Chief executive Mike Coupe said price pressures meant that ‘the market will remain competitive.’
“Market conditions remain challenging,” said Coupe. “Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future.
“However, we are confident that our strategy to be a trusted multi-channel, multi-product and services retailer is delivering and will enable us to continue to outperform our major peers.”
Earlier this year, Sainsbury’s agreed to a £1.4bn takeover of Argos-owner Home Retail Group, a deal that is now under examination from the Competition and Markets Authority who is looking into whether it would lead to a “substantial lessening of competition” for consumers.