Sainsbury's sales fall for first time in nine years

The trading update is one of the last to be presented by Mr King, who is stepping down as Sainsbury's chief executive in the summer.

Sainsbury's has been the best performing major supermarket since the onset of the recession in the UK, with its sales growing ahead of rivals Tesco and Morrisons.

Despite the decline in sales, Mr King insisted the retailer has maintained its market share. He blamed the performance on Sainsbury's performing strongly in the same period last year, when it won market share from rivals affected by the horse meat crisis.

Last week, Morrisons reported a slump in annual profits and kicked off a price war in the industry by committing £1bn to lowering prices over the next three years.

Sainsbury's said it has lowered the price of milk, bread and eggs, but will "continue to pay a fair price to farmers".

Mr King added: "We have seen a decline in sales in the quarter reflecting tough comparatives.

"This time last year our sales benefited significantly from the discovery of horsemeat in some branded and competitors' products. We are pleased, however, that market data shows we have maintained market share at 17pc."

more