J Sainsbury reported slowing sales growth as consumer caution hits UK retailers, with like-for-like sales excluding fuel rising 2.1% to £9.2bn in the 16 weeks to June 20. This marks a decline from the previous quarter's 3.1% growth, continuing the group's trend of decelerating performance amid economic uncertainty.

The retailer's general merchandise arm Argos saw sales drop 0.5% to £1.1bn despite higher volumes, which chief executive Simon Roberts attributed to subdued consumer spending. Within Sainsbury's core brand, clothing and general merchandise fell 3.7%, partially offsetting grocery division gains.

Roberts blamed the Iran war for weighing on households through rising energy and everyday costs, though he expects inflation to be less severe than initially feared. The warning follows Tesco's similar slowdown, with the UK's largest supermarket posting 1.8% growth in its latest quarter.

Despite uncertainty, Sainsbury's maintained its operating profit guidance of £975mn to £1.1bn and saw shares rise 2.2%. Roberts called for policy measures to boost consumer confidence, including reduced levies and energy costs.