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Sainsbury's sales fall for sixth straight quarter

Scott Barbour, Getty Images News, Getty Images

British supermarket Sainsbury's on Wednesday posted a sixth straight quarter of declining underlying sales as deflation continued to weigh on the business.

The group, which trails market leader Tesco and Wal-Mart's Asda by annual revenue, said sales at stores open over a year fell 2.1 percent, excluding fuel, in the 12 weeks to June 6, its fiscal first quarter.

That was bang in line with analysts' consensus forecast but worse than a fall of 1.9 percent in the previous quarter.

Read MoreSainsbury's sales plunge as supermarket wars bite

Sainsbury's, in common with its major rivals, is battling to win back ground against the discounters Aldi and Lidl through price cuts. All players are also having to deal with record commodity-driven industry price deflation.

Sainsbury's said that despite the challenging market conditions it was confident it was building on strong foundations and making good progress with its strategy.


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