Sainsbury’s sales surprisingly slumped as it battled to secure its £14.1billion merger with Asda.
Britain’s second biggest supermarket was the only major name to record a drop in the three months to June 17 – falling 0.2 per cent.
The overall grocery market, however, chalked up two years of continuous growth.
Sainsbury’s was the only major name to record a drop in the three months to June 17 – falling 0.2 per cent
Sainsbury’s performance contrasts with its future partner Asda which notched up growth of 1.8 per cent, according to the latest grocery data by Kantar Worldpanel.
Asda and Sainsbury’s are the subject of an investigation by the competition regulator, expected to last 18 months.
If it gets the green light, the merged group will become the UK’s biggest supermarket with annual sales of £51billion.
Last week Asda chief executive Roger Burnley and Sainsbury’s boss Mike Coupe were grilled by MPs who raised concerns over the impact of the tie-up on suppliers and customers.
Sainsbury’s performance contrasts with its future partner Asda which notched up growth of 1.8 per cent, according to the latest grocery data by Kantar Worldpanel
Russ Mould, investment director at AJ Bell, said: ‘The disappointing performance helps underpin the argument for Sainsbury’s tie-up with Asda.
‘Getting regulatory approval for the merger is unlikely to be a straightforward process.’
Morrisons saw the biggest sales rise of the Big Four supermarkets during the period with growth of 1.9 per cent, while Tesco recorded a 1.4 per cent lift.
Co-op recorded its strongest growth in over a year as sales grew by 2.4 per cent and Iceland notched up 2.5 per cent growth.
Waitrose grew sales just 0.1 per cent.
Lidl and Ocado led the pack with growth of 10 per cent and 10.1 per cent respectively, but Aldi grew market share to a record high of 7.4 per cent as sales increased 8.2 per cent.
Fraser McKevitt of Kantar Worldpanel said: ‘After a couple of difficult years for the supermarkets, this sustained period of growth is welcome news.’