Sainsbury’s sales set to slip again

The group recently registered its first annual loss in ten years as it fell into the red by �72m after writing down �628m on the value of its property estate

The group recently registered its first annual loss in ten years as it fell into the red by �72m after writing down �628m on the value of its property estate

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SUPERMARKET operator Sainsbury’s is expected to rep­ort a sixth successive quarter of falling like-for-like sales this week.

The chain remains under pressure as Britain’s big four grocers – which also include Tesco, Asda and Morrisons – are engaged in fierce competition as they scramble for market share, which is being eaten away by discounters Aldi and Lidl.

Analysts at brokerage Jefferies expect Sainsbury’s to report first-quarter like-for-like sales down 1.8 per cent, following a fall of 1.9 per cent in the previous period.

Last month, the grocery giant registered its first annual loss in a decade, falling into the red by £72 million after writing down £628m on the value of its property estate.

The group is slowing its expansion and expects to deliver some 450,000sq ft of gross new space over the year, with one to two convenience store openings per week. This compares with the addition of 733,000sq ft the previous year.

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