COMPANY FOCUS: J SAINSBURY

SAINSBURY’S blamed lower food prices for the fall in its second-quarter sales, but chief executive Mike Coupe said he was confident the supermarket will continue to “outperform our major peers”.

In a statement on Wednesday, management blamed food price deflation for a 1.1% drop in like-for-like sales, excluding fuel, in the 16 weeks to September 24 – slightly worse than analysts’ expectations. Like other supermarkets, Sainsbury’s is reducing promotions and focusing on low prices on everyday products.

Total retail sales shrank by 0.4% due to lower-thanexpected growth in store space. Over the reporting period, it opened one new supermarket, one replacement and 16 new convenience stores, with six closures.

Convenience store sales grew by 7% and online sales were also up 8%.

Sales at Argos, which Sainsbury’s acquired this month, grew by 2.3% in the second quarter to August 27, Argos’ best performance since 2014. The integration plan is moving swiftly, with Sainsbury’s planning to open 200 digital collection points by the end of the year.