SUPERMARKET Sainsbury's has seen a slowdown in sales growth, but insisted it has the "right strategy" in place as it pushes ahead with its £12 billion Asda tie-up.

The chain, which has stores in Bolton town centre, Westhoughton, Horwich and Bromley Cross, reported a 0.2pc rise in like-for-like sales for its first quarter to June 30, down from growth of 0.9pc in the previous three months.

It said grocery sales rose 0.5pc, while general merchandise grew by 1.7pc and clothing lifted 0.8pc in a "very challenging market".

While it was left nursing a slowdown in overall sales growth, Sainsbury's said sales by volume had improved thanks to recent price cuts.

Its sales performance was also better than feared, with the group expected to reveal a sales dip in the quarter.