The news comes after it cut prices on more than 1,000 food and grocery products including dairy, meat, fish and poultry. Like-for-like sales fell 1.6%.
Sainsbury’s chief executive, Mike Coupe, claimed the supermarket is making progress in a tough environment for retailers and plans to make improvements in 400 stores across the UK.
“Retail markets remain highly competitive and promotional,” he said.
GlobalData analyst Thomas Brereton added the supermarket’s premium image meant it would struggle when trying to compete on prices.