Sainsbury’s hit by tough trading environment
Sainsbury’s, which is the UK’s third largest supermarket chain, toady announced fourth quarter sales missed analysts’ expectations.
Like-for-like sales grew 1% in the 10 weeks to March 19, missing expectations of a 2.4% growth rate and slower than the 3.6% reported in the previous quarter.
Shares in the supermarket giant fell 6% following the results.
However, the slower growth was attributed to consumers tightening their purse strings in the face of soaring inflation and Government spending cuts.
However, sales at Sainsbury have been growing faster than most of its rivals for the last few quarters – boosted by its presence in the more affluent south of England.
Chief executive Justin King said the consumer is “wary” and “they expect tax rises, cuts, so we are now looking to the future; for government to show us how things get better in time.”
Sainsbury’s has 537 supermarkets, 335 convenience stores and has a workforce of 150,000.