Sales growth slows at Sainsbury's

Supermarket group Sainsbury’s today reported a slowdown in sales growth as it battled against poor summer weather and tough competition.

The company, which is currently a takeover target for Qatari-backed Delta Two, said like-for-like sales in the three months to October 6 rose by 3.1%, excluding fuel, down from 5.1% growth in the first three months of the financial year.

The slowdown in the second quarter mirrors similar results from Morrisons and Tesco in the UK, as both reported weaker sales against tough comparatives with the World Cup and exceptionally good summer weather last year.

Like-for-like sales in the first half of the year increased by 4%, driven by growth in the number of customer transactions.

Last week, Tesco, the UK’s largest supermarket, posted a 3.5% rise in like-for-like sales during the six months to August 25.