Supermarket Sainsbury’s has announced its first decline in sales, saying the market is growing at its slowest rate since 2005.
During financial crisis, supermarkets normally perform better than other business. This is because even when people are struggling to find money, they have to eat.
But the long years of economic stagnation were a bit different from previous crises. Consumers tend to become much more price conscious.
“Of course it’s disappointing, but it has to be put in context,” Chief ExecutiveJustin King said in a statement.
King said the supermarket chain had maintained its 17% market share. He is still confident it would outperform its rivals in the coming years.
“Although some economic indicators are showing an improvement in the health of the economy, we expect the outlook for customers to continue to be challenging for the coming year,” said Mr. King.
The company said it expected consumers would still be under pressure the year ahead.