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Sainsbury's posts 0.8% fall in sales

Sainsbury's. Credit: PA Wire

Sainsbury's has posted a 0.8% fall in sales as it continues to face pressure amid a supermarket price war.

Britain's second biggest supermarket reported the drop in like-for-like sales excluding fuel for the 12 weeks to June 4.

The fall represents a setback for the company, after a return to quarterly growth for the first time in more than two years, in the previous three months.

Mike Coupe, chief executive of Sainsbury's, said: "Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future."

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Sainsbury's agrees to buy Argos owner for £1.2 billion

Sainsbury's said the deal would make it a 'world-leading' retailer Credit: PA

Sainsbury’s has bought out the Argos owner Home Retail Group for £1.2 billion.

The deal comes after four months of tough negotiations which saw South African rival Steinhoff abandon its bid to buy the group earlier today

Sainsbury’s said the buyout would allow it to become a "world-leading" retailer as the supermarket sector comes under intense competitive pressure, and will create £160 million of cost savings.

The UK grocery retail industry is undergoing a period of intense change in customer shopping behaviour and in the competitive environment.

We will create a multi-product, multi-channel proposition with fast delivery networks that we believe will be very attractive to the customers of both businesses."

– David Tyler, Sainsbury's chairman

Argos owner receives takeover bid from South African firm

Argos are currently owned by the Home Retail Group. Credit: PA

Sainsbury's could be drawn into a bidding war for Home Retail Group after it was announced the Argos owner is considering a rival offer from a South African-based retailer.

Steinhoff, which makes furniture, made the approach to the Home Retail board earlier today.

They are now reviewing the proposal and have asked shareholders to take no further action.

The news comes after Home Retail had previously said it was willing to recommend the Sainsbury's bid which valued the company at £1.3 billion.

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