Sainsburys Local, Earlsfield, London 10/9/09

Sainsbury’s has seen its sales fall over the past four months as it continues to fight a “tough trading environment”.

The supermarket reported a 1.2% drop in total sales, excluding fuel, for the four months to the end of June, while like-for-like sales fell 1.6% during the period.

Sainsbury’s said that, in the current climate, the retail market is “highly competitive and promotional”. As supermarkets battle to beat each other on prices, Sainsbury’s said it reduced prices for over 1,000 everyday products across dairy, meat, fish, poultry and fresh produce.