Britain’s second supermarket group J Sainsbury revealed today [Wednesday] that it saw weaker-than-expected growth for its Q1 ended 22 June, despite extensive promotions in June to mark the World Cup football tournament.
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UK like-for-like sales, including petrol, were up 2.7% in the Q1, against predictions of more than 3%. The group’s US grocery chain Shaw’s also experienced tough trading conditions and slowdown in like-for-like growth.
CEO Peter Davis commented: “In the UK, growth in the market has definitely slowed and inflation has been lower.
“Nevertheless,” he added: “We finished the quarter more strongly than we started it.”
The group warned at the end of May that it was facing a drop in sales due to increased competition from sector rivals.
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By GlobalDataDavis also explained: “This quarter’s performance in the UK should be seen in the context of our recovery programme, which remains on track, and delivered restored profits and dividend growth last year.
“In anticipation of slower market growth than last year, we continue to focus on cost reductions and are confident of delivering the increased cost saving targets of £700m by March 2004.”
