Executive Summary

• The UK’s second-largest grocery retailer, J. Sainsbury, reported 2Q17 comps down 1.1%, trailing the consensus of (0.8)%. Total sales were down 0.4%.
• Total sales growth and comparable sales growth both recorded a sequential weakening from 1Q17, while rivals Tesco and Wm Morrison are reporting strengthening performances.
• Newly acquired Argos posted sales up 3.0% in total and up 2.3% on a comparable-store basis.