Sainsbury’s shares fall after trading update
Sainsbury’s shares fell despite some resilient numbers from its update. The boss of Britain’s second biggest supermarket group says higher wages will temper the UK’s food inflation fall.
(Video Transcript)
Sainsbury's
Sainsbury's shares are currently down 1.4%, although they had quite a resilient set of numbers. Just taking a look at the shares The company says it has returned to volume growth, and Q1 like-for-like sales were up 9.8%. The company is also keeping its profit guidance for the full year.
Tesco
Just checking on peer Tesco as well because Tesco, like many of the grocers like Sainsbury's, have been making sounds that they will cut prices, and some of them already have cut prices because, of course, they are under pressure by the Bank of England and also lawmakers to try and perhaps give back some of the margins given that inflation is finally showing signs of easing.
Last month, Tesco reported a 9% rise in first-quarter underlying UK sales and said food inflation had peaked. But just checking in on Sainsbury's, its shares are down some 1.4%.
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