Sainsbury's has watched its share price slide this morning (January 9th) despite news the supermarket achieved record sales over the Christmas period.
Total sales excluding fuel rose by 0.9 per cent year on year in the 14 weeks to January 5th and the store said it served its highest ever number of customers over this timeframe.
Indeed, the week before December 25th was its busiest ever, with £16 million in sales taking place in the hour between noon and 13:00 GMT on Sunday December 23rd alone.
Chief executive of the supermarket chain Justin King stated the company had done well but remained cautious of the future.
"We expect the challenging economic backdrop to persist, with customers looking to re-balance their household budget after the festivities," he explained.
At 08:35 GMT, shares in Sainsbury's retreated by 1.3 per cent to 334.30p per unit on the London Stock Exchange.
Learn all about CFD trading strategies and major individual shares at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.