Sainsbury’s shares down despite sales growth

<p>Sainsbury’s has confirmed a two per cent rise in sales.</p>

The share price of Sainsbury's is down today (October 2nd), despite the supermarket chain confirming sales have risen by two per cent.

In its latest financial results, which cover the three months to September 28th, online grocery sales rose by more than 15 per cent, while sales at convenience stores were up 20 per cent on the previous quarter.

Chief executive Justin King stressed that the market remained tough despite "some encouraging" signs for the UK economy as a whole.

Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, added that the "quality value consumer proposition" provided by Sainsbury's has enabled it to grow.

He added: "Both its online and convenience store channels offer alternatives to time stretched consumers, whilst its emphasis on clothing in the general merchandise arena has to date been rewarded."

But despite the sales growth at Sainsbury's, its share price has fallen by 1.24 per cent during trading today. At 14:32 BST, its stocks were selling for 385.36, down almost five points for the day on the London Stock Exchange.

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