Industry data from Kantar Worldpanel has revealed that sales at J Sainsbury PLC (LON:SBRY) dipped in the last 12 weeks, while all its ‘big four’ rivals saw sales increase.
The market researcher said sales at the FTSE 100-supermarket chain were down 0.2% in the 12 weeks to June 17, while sales at Walmart Stores Inc (NYSE:WMT)-owned Asda, Tesco PLC (LON:TSCO), and WM Morrison Supermarkets PLC (LON:MRW) rose by 1.8%, 1.4%, and 1.9% respectively.
READ: Sainsbury's and Asda lose market share as sales trail behind 'big four' rivals, Kantar reveals
The latest data is a reversal from the 12 weeks to April 22, when Sainsbury’s sales rose 0.2%, however Asda upped its growth rate from 1.4% while Tesco and Morrisons pulled back from previous growth of 2.1% and 2.2% respectively.
Commenting on the results, Kantar said the two years of sustained growth was “welcome news” for the sector after “a couple of difficult years for the supermarkets”.
They added: “The latest figures largely pre-date the soaring temperatures and new-found optimism for England’s World Cup chances but with the nation spending over half a billion more in supermarkets this period compared with last year, it suggests that summer has already arrived for many.”
However, despite the sales growth the big four supermarkets were once again eclipsed in the figures by discounters Aldi and Lidl, who outstripped them by a wide margin with sales growing by 8.2% and 10% respectively.
As it stands, Sainsbury’s is the second largest supermarket after Tesco in terms of market share, followed by Asda in third place and Morrisons in fourth.
But if Sainsbury’s plan to merge with Asda goes ahead, the enlarged group will take the top spot from Tesco.
READ: Sainsbury's confirms £15bn Asda merger and dismisses reports stores will close
The two supermarkets confirmed the £15bn merger on 30 April, saying both supermarket brands would remain intact while Sainsbury’s insisted there were no plans to close stores after the merger.
Russ Mould, investment director at AJ Bell, said the Kantar figures would make "grim reading" for Sainsbury's shareholders, "helping to account for the slide in the share price today".
He added that the disappointing performance helped to underpin the argument for the Sainsbury's/Asda merger, although cautioned that gaining regulatory approval for the deal was "unlikely to be a straightforward process"
In early morning trading Tuesday, Sainsbury’s shares were down 1.9% at 306.9p while Tesco shares were down 1% at 258.4p and Morrison’s shares were up 0.1% at 247.9p.
--Adds analyst comment and updates share prices--