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Sainsbury's sales are up in the first quarter but lag behind competitors Morrisons, Asda and Tesco.

In the 12 weeks to June 14th, like-for-like sales excluding fuel were up 3.2 per cent, which Sainsbury's chief executive said was against tough comparatives.

The figures represent a slowing in sales for the retailer, as Sainsbury's posted a 4.1 per cent increase in sales over the previous three months.

For the equivalent period, Tesco reported an increase in like-for-like sales of 3.5 per cent, Asda sales were up five per cent and Morrison led the way with sales uplifts of seven per cent.

Sainsbury's has responded to the shift in consumer priorities by promoting its basics range, which the retailer said has seen strong growth.

Mr King said: "Whilst we anticipate that the environment will remain challenging, we operate from a strong financial position and our expectations for the full year remain unchanged."

Online sales increased 40 per cent over the period, and the rising price of petrol and diesel bumped up total like-for-like growth to 7.3 per cent.

Shares in the grocer fell 2.23 per cent to 328.5p this morning on the London Stock Exchange.