Sainsbury's shares slide on dented Q2 sales

U.K. supermarket chain J Sainsbury saw sales slip in its fiscal second quarter, with shoppers making more frequent visits but spending less during each trip.

The retailer said like-for-like sales, excluding fuel, had fallen 2.8 percent, during the quarter, as the retailer struggled to maintain market share in the "fiercely competitive" supermarket space.

The group cut its 2014 sales forecast, with like-for-like sales in the second half of the year now expected to be similar to the first half. Previously, Sainsbury's was forecasting a small rise in sales during the latter half of the year.

"The market remains dynamic and fiercely competitive. The long-running trend of more frequent, convenient shopping has accelerated, resulting in smaller basket sizes," Chief Executive Mike Coupe said in a statement.

Read MoreBuffett loses big on Tesco share dive

A man puts a shopping bag into a car outside a Sainsbury's store in London
Ben Stansall I AFP I Getty Images
A man puts a shopping bag into a car outside a Sainsbury's store in London

Sainsbury's shares fell over 3 percent shortly in early trade on Wednesday.

The group's stock price has struggled over the last 12 months, and is down over 30 percent since the start of the year. They recently hit a six-year low after rival Tesco reported a £250 million ($405 million) accounting error.

Read MoreUK watchdog launches investigation into Tesco

J Sainsbury Chief Financial Officer Mike Rogers told CNBC that the supermarket's results were strong in the context of a "very tough market."

"If you compare our figures with our immediate supermarket peers, you will see actually that our performance is relatively strong," he said on Wednesday.

"We are continuing to grow our non-food and convenience business and the bank is on a successful track towards transition, so there are some very positive messages in what we're saying today."

Read MoreTesco crisis deepens as sales fall and new CFO joins

When asked whether the retailer had plans to cut its dividend, Rogers said no change was being announced on Wednesday, but the policy was constantly under review.

"We are in the midst of a strategic review of the business—one out of which will be the dividend policy. We don't know yet. We will update the market come November," he said.

Sainsbury's is one of the U.K.'s "big four" supermarkets, along with Asda, Morrisons and Tesco, which have all be losing market share to discount retailers such as Aldi.

Read MoreAldi profit booms amid UK supermarket wars

Sainsbury's is the U.K.'s third-largest supermarket chain by market share, with 16.5 percent, after Tesco and Asda, according to Kantar Worldpanel data.