CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Sainsbury 8217 s records third consecutive quarter sales drop

Article By: ,  Financial Analyst
October 1, 2014 10:15 AM

Sainsbury's has experienced a drop in sales for a third consecutive quarter.

The supermarket recorded a 2.8 per cent fall in like-for-like sales, excluding fuel, for the three months to the end of September. The drop has been fuelled by increasing competition within the supermarket sector including growing price wars and a bigger influence from discount grocery stores such as Aldi and Lidl.

Sainsbury's, along with other traditional supermarkets such as Tesco, Asda and Morrisons, have been looking at new strategies to combat the growth of Aldi and Lidl. Sainsbury's itself has teamed up with Scandinavian retail group, Dansk Supermarked, to relaunch Netto in the UK. The company has a series of stores scheduled to open next year with the north of England being the focus of the campaign.

The supermarket has been forced to lower prices on essential food items to compete with the likes of Asda as well as the discount retailers. It stated that it expected this trend in sales to continue into the second half of the year with figures due to be "similar to the first half".

Mike Coupe, chief executive of Sainsbury's, explained that "deflation in many areas of our business" is one of key drivers for short-term competition.

Speaking to BBC Radio 4's Today programme, Mr Coupe said: "Customers are shopping very differently to the way they were shopping even a year ago. So we are seeing an increase in the number of outlets available to them and they are shopping much more frequently and little and often shopping so these trends are changing very rapidly."

The drop in like-for-like sales goes alongside the decline in total sales which fell by 0.8 per cent over the past quarter. It has had a knock-on effect on the supermarket's share price which opened 0.72 per cent down at 249.70p.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024