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

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.

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