Sainsbury's sales growth continued to slow in the first quarter after the supermarket group reported a 0.2% rise.

The increase for the three months to June compares to 0.9% in the fourth quarter and 1.1% in the three months before.

Chief executive Mike Coupe said that "the market remains competitive".

But he said that Sainsbury's merger with Asda will "create a more resilient and adaptable business for the future".

Mr Coupe said: "The headline numbers reflect the level of price reductions we have made in key areas like fresh meat, fruit and vegetables since March."

He added: "Our price position has improved and customers have responded well."

But Emma-Lou Montgomery, associate director at Fidelity Personal Investing, said: "Value-driven competitors and price-conscious consumers are continuing to eat away at Sainsbury's bottom line, pushing sales growth lower yet again this quarter.

"Going forward, Sainsbury's bosses are clearly pinning their hopes on the newly-created supermarket behemoth, that a merger with Asda would create, bulldozing its way through this relentlessly competitive sector."