The UK's second-biggest supermarket chain J Sainsbury has reported slower than expected growth in sales.

The company said on Wednesday that sales adjusted for new store openings and including petrol grew by 2.7% during the three months to 22 June compared with the same period last year.

Investors, who had been hoping that sales growth would top 3%, marked Sainsbury shares 7 pence lower at 303p in early trade on Wednesday. Shares closed 23p lower at 287p.

Supermarket chain Sainsbury's lost 23p to 287p

Sainsbury chief executive Sir Peter Davis blamed slowing market conditions in the UK, and cited a "short-term impact" from the company's decision to suspend its Air Miles customer loyalty scheme.

Advertising push

But he said an ongoing programme to revamp Sainsbury stores and its new "Nectar" loyalty programme should help to underpin sales revenues in the months ahead.

"We expect to achieve a stronger second-half performance," Sir Peter said.

The company's weakening sales growth figure comes despite a high-profile promotional campaign during the finals of the World Cup football tournament.

The campaign included a series of advertisements featuring the England football team's coach Sven Goran-Eriksson and popular TV chef Jamie Oliver.