Analyst Views: Is Sainsbury’s sales fall a sign of a more serious underlying trend?
DAVID MCCARTHY | HSBC
Part of the sector’s problems is its introverted definition of “peers”. Sainsbury is losing like-for-like sales to retailers that it appears not to define as “peers”. This sector is in structural decline, with no end in sight. We downgrade our rating, target price and forecasts to reflect our rising concerns.
JAMES GRZINIC | JEFFERIES
Market share dynamics suggest that Sainsbury has been struggling to out-trade peers since November 2013 with a likely coupon-fuelled Christmas the exception. Ultimately it looks like the combination of discounter growth and lack of volume response to lower inflationary pressures may be catching up with Sainsbury’s.
RICHARD HUNTER | HARGREAVES LANSDOWN
Whilst there are some glimmers of hope in the statement, these are unfortunately insufficient to stem the share price’s listless trend. Against strong comparatives, the sales number fell and by more than the market was expecting… The strategic measures being taken by Sainsbury’s quoted rivals will exert further pressure.