Fresh blow for Sainsbury's as sales slip
The supermarket was the only one of the big four grocery chains to see a fall in sales, according to latest industry figures.
Tuesday 30 April 2019 14:14, UK
Sainsbury's has suffered a fresh setback following the collapse of its planned merger with Asda, with latest industry figures showing sales in decline as it lags behind rivals.
The company was the only one of the "big four" supermarkets to see a downturn over the 12 weeks to 21 April, with sales falling 1.2%.
It comes days after the competition regulator blocked Sainsbury's planned £13bn merger with rival Asda, prompting speculation about the retailer's strategy and the future of boss Mike Coupe.
However Mr Coupe's job is not under immediate threat. A Sainsbury's spokeswoman said: "The chairman and the board are fully behind Mike."
The figures come a day before the company reports annual results.
Kantar said market leader Tesco's sales rose 1% while Asda was up 0.3% and Morrisons rose 0.6%.
But all the big four chains lost market share as discount rivals Aldi and Lidl gobbled up a bigger share of the pie, growing sales by 11.6% and 8.6% respectively.
However, Sainsbury's reclaimed its position as Britain's number two supermarket group by market share - a status it lost to Asda for the first time in four years last month.
Sainsbury's argues that the analysis under-reads its non-food share of the sector, which it has now streamlined in its stores under the Argos range. Kantar's data does not include Argos sales.
One bright spot for Sainsbury's highlighted by the figures was its double-digit digital growth.
That coincided with the launch of its first mobile-only payment store - without tills - in central London this week.
The overall Kantar figures showed total sales for the sector increasing 2% year-on-year, the strongest growth seen this year, boosted by a record £2.5bn spend during the Easter week.
Shoppers spent £335m on Easter eggs and other seasonal chocolate over the 12-week period, Kantar said.