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03 July 2019

Sainsbury struggles to compete

Despite price cuts, supermarket J Sainsbury is still lagging behind competitors on price as trading conditions remain tough.

In its latest quarterly results, the supermarket announced a fall of 1.2% in its total sales excluding fuel with like-for-like sales down 1.6%.

Roy Kaitcer, Investment Manager at Redmayne Bentley, said: “The share price this morning, having risen above 300p after the proposed merger with Asda was announced in April 2018, opened at 196.95p, although it has risen during the morning’s trading. The outlook is very muted. Much of this is down to their pricing – it is simply not as competitive as Tesco and Asda. There doesn’t seem to have been much improvement in Sainsbury’s general merchandising and grocery offering and it has a challenge ahead to get its offering to consumers right if the outlook is to improve.”

The Competition and Markets Authority blocked the company’s proposed takeover of Asda earlier this year.
Please note, investments and income arising from them can fall as well as rise in value. Past performance and forecasts are not a reliable indicator of future results or performance. This article is for information only and does not constitute a recommendation to buy or sell shares in J Sainsbury.
 
 
Sainsbury struggles to compete
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