Shares in J Sainsbury (LON:SBRY) have fallen into the red in today’s session, as the latest numbers from Kantar Worldpanel showed that the grocer’s sales had fallen in the 12 weeks to June 17. By contrast, sales at its potential partner Asda rose during the reported period.
As of 09:57 BST, Sainsbury’s share price had given up 1.79 percent to 307.30p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.59 percent higher at 7,554.33 points. The group’s shares have added a little over a quarter to their value over the past year, as compared with about a 1.4-percent gain in the Footsie.
Sainsbury’s underperforms rivals
Kantar Worldpanel reported today that overall UK supermarket sales had climbed for 25 consecutive periods in the 12 weeks to June 17, and now stood at 2.1 percent compared with this time last year. At Sainsbury’s, however, sales dipped by 0.2 percent during the reported period, while its FTSE 100 rivals Tesco (LON:TSCO) and Morrisons (LON:MRW) saw sales rise.
Sainsbury’s “sold an extra £60 million of goods on promotion this year and while this helped attract 159,000 new customers - and the retailer simultaneously delivered a strong online performance – Sainsbury’s overall share fell by 0.4 percentage points to 15.6%,” Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, commented in the statement.
Sales at Walmart’s Asda rise
Sainsbury’s potential partner Asda meanwhile increased sales by 1.8 percent, marking the grocer’s 16-period run of growth is the longest the retailer has achieved since March 2014.
Sainsbury’s and Asda have announced a merger deal which is now being probed by the UK Competition and Markets Authority. The watchdog recently published a summary of responses from interested parties commenting on the proposed tie-up.