Sainsbury sales growth slows

Reuters 805AM GMT twenty-four Mar 2010

Sainsbury (J)

Britain"s grocers are battling the pointy slack in food cost inflation, as well as fears that the doubt surrounding an arriving ubiquitous choosing and stairs to cut supervision borrowing will strike consumers in the months ahead.

Justin King, arch executive, pronounced in a trade update. "While we design the consumer sourroundings to sojourn severe in 2010, the concept patron interest together with the took off expansion of space for new supermarkets, extensions and preference stores equates to we are well placed to have one after another great progress."

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Sainsbury, that runs around 525 supermarkets and 300 preference stores, pronounced on Wednesday sales at stores open at slightest one year rose 1.7pc, incompatible fuel, in the eleven weeks to Mar 20, that is the fourth entertain of the monetary year.

That was down from 3.7pc in the third entertain and the smallest climb given the initial entertain of the 2005-6 monetary year, but only on top of an normal foresee for a climb of 1pc-1.5pc in a Reuters check of five analysts.

An industry consult on Tuesday showed British sell sales slowed some-more than approaching in Mar whilst building coverings sequence Carpetrightblamed jumpy consumers for the distinction warning.

The Co-operative Group, Britain"s fifth-biggest grocer, pronounced last week the underlying sales were nearby flat.

Sainsbury pronounced normal weekly patron numbers were up 1 million at nineteen million and sales of ubiquitous sell products - a key concentration for expansion - rose at 3 times the rate of food.

Total sales, together with new offered space, rose 7.1pc, or 4.4pc incompatible fuel.