Sainsbury’s falls behind big four with fall in sales

Sainsbury’s (OTCMKTS: JSAIY) saw a fall in sales in the 12 weeks to 17 June, whilst the remaining big four supermarkets posted increases.

According to new data from Kantar Worldpanel, sales slumped by 0.2 per cent in the 12 weeks to 17 June sending shares down 0.4 percent.

Tesco (LON: TSCO) saw sales increase by 1.4 percent, whilst Morrisons (LON: MRW) was the strongest performer of the big four and saw sales increase by 1.8 percent compared to the same period last year.

Asda, Sainsbury’s merger partner, saw sales increase by 1.8 percent compared to this time last year.

The big four supermarkets did not perform as well as discounters Aldi and Lidl however, who posted sales rises of 8.2 percent and 10 percent respectively.

The strong sales for most supermarkets were boosted by the hot weather and increased sales of spirits, soft drinks and hay fever remedies.

Fraser McKevitt, head of retail and consumer insights at Kantar Worldpanel, said: “Consumers are also feeling some seasonal downsides – sales of hay fever remedies are up 19 percent year-on-year… reflecting Met Office predictions of record pollen levels.”

“Shoppers have already splashed out 6 percent more on spirits, and gin sales alone have increased by £38 million and 1.7 million litres, while soft drinks are up 7 percent.”

“Consumers are also feeling some seasonal downsides – sales of hay fever remedies are up by 19 percent year-on-year and have been bought by 5.7 million households, reflecting Met Office predictions of record pollen levels,” he added.

“Lidl’s 10 percent sales growth makes it the only bricks and mortar retailer to experience double digital growth, and as a major sponsor of England’s World Cup squad it will be hoping to see the team’s success so far translate into even higher growth in July.”