J Sainsbury Plc reported first-quarter sales that beat analyst estimates as permanent price reductions helped stem a loss of customers to cheaper competitors.
Same-store sales fell 0.8 percent, excluding fuel, in the 12 weeks ended June 4, London-based Sainsbury said in a statement Wednesday. That compared with the median estimate of 14 analysts for a 1.7 percent decline. Clothing sales rose nearly 5 percent.
“We have made a solid start to the year,” Chief Executive Officer Mike Coupe said in the statement. “Market conditions remain challenging. Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future.”
While beating estimates, sales resumed their decline after rising for the first time in two year in the previous quarter. All the U.K.’s mainstream grocers are suffering at the hands of Aldi and Lidl as the German discounters continue to win customers with their low prices and increased store numbers.
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