UK retail giant, Sainsbury's has said that it is cutting its forecast for this year's financial year stating that the customers are expected to spend carefully in the coming months.

The retail giant said that its sale is expected to rise 1 per cent to 1.5 per cent during this financial year. The company recorded record pre-Christmas sale but still expects its yearly sale to rise only moderately during the year.

The figures released by the British Retail Consortium showed that shop pries were 0.8 percent lower in December 2013 compared to the same month of the previous year, which is the largest fall in prices since the survey began in
2006. The fall in December comes after the prices fell for eight months. The BRC data showed that clothing prices in December were 10 percent lower than a year earlier.

The company said that revenues at stores open at least a year earlier rose 0.2 percent, excluding gasoline, in the 14 weeks till 4 January, according to London-based Sainsbury. Analysts were expecting a 0.4 percent decline in revenue.

 Experts have said that major stores are losing business to Aldi and Lidl and the upscale Waitrose chain. UK's third-largest supermarket chain, has said that it's has maintained its record of nine years of continuous growth as customers reached stores this holiday season. The retail chain recorded a strong sale season as customers flocked to its stores to buy products on discounts.