Sales dip at under-pressure Sainsbury’s

Sainsbury’s suffered a fall in sales as it stayed under pressure in the supermarket price war.

Britain’s second biggest supermarket reported a 0.8% drop in like-for-like sales, excluding fuel, for the 12 weeks to June 4.

The fall marks a setback after a return to quarterly like-for-like growth for the first time in more than two years the previous three months, when sales edged 0.1% higher.

Mike Coupe, chief executive of Sainsbury’s, said: “Market conditions remain challenging.

“Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future.”

Sainsbury’s recently began scrapping multi-buy promotions and has ditched its brand-match guarantee in favour of overall lower prices.

The group’s £1.4 billion takeover of Argos owner Home Retail Group faces scrutiny from the competition watchdog.

The Competition and Markets Authority said last month it was looking into whether the tie-up with Argos owner Home Retail could result in a “substantial lessening of competition”.

It will consider comments on the deal and decide whether to launch an inquiry by July 25.

Meanwhile, like-for-like sales at WH Smith for the 14 weeks to June 4 were flat, but it is confident for the full year.

Total group sales were up 2%, like-for-likes were flat but travel business sales grew 9% for the retailer which hailed further progress in managing its space.