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.

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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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