Sainsbury's announces rise in annual sales
Sainsbury’s has said that it expects supermarket sales to continue to dwindleReuters

British supermarket chain Sainsbury's says it expects supermarket sales to fall for the "next few years".

Sainsbury's made the forecast as part of its half-year results which saw like-for-like sales dip 2.1%.

"The grocery sector is undergoing structural change as customers shop more frequently, using online, convenience and discount channels more. We expect supermarket like-for-like sales in the sector to be negative for the next few years," read the statement.

However, the company said that it has robust plans to address this challenge, which will see £150m price cuts.

Overall, it was a poor six months for Sainsbury's with its profit before tax falling 6.3% to £375m.

However, chief executive Mike Coupe said the foundations are in place for a bright future.

"Our strategy is evolving to address the continuing shifts in customer shopping patterns which we believe will lead to a greater emphasis on product quality and ease of shopping, and an increase in multi-channel shopping," he said.

"We have examined every aspect of our business and we have good foundations for future growth."

Sainsbury's shares fell by 3.5% to £259.00p on the back of the announcement.