Comparable sales, excluding fuel for the 11 weeks to 20 March (its fourth quarter), slowed to 1.7%, down from 3.7% growth in the third quarter.
A stellar performance from Sainsbury's childrenswear range and an increase in the number of stores helped boost flagging food sales.
Non-food sales grew at three times the rate of food while gross space was up 6.8% in the full year.
Like-for-like sales for the full year were up 3%, and 4.3% excluding fuel.
Justin King, chief executive of Sainsbury's, said the sluggish like-for-like sales should be placed in the context of a "period of incredibly strong growth" the year before, when sales were up 6.2%.
He called the results "another good performance" that were "in line with expectations". However, the chief executive did warn that the consumer environment will "remain challenging in 2010".
Sainsbury's in now serving more than 19 million customers on average per week, up one million on 2008.
The slow down of sales in its last quarter will be noted with caution ahead of Alistair Darling's pre election Budget today. Yesterday, retailer Carpetright was forced to issue a profit warning after its recovering sales faltered.
In the seven weeks to 20 March, like-for-like sales in the UK rose only 1.4%, compared with a rise of 2.3% in the 13 weeks to January 30.
The high street floor specialist is widely considered a bellwether for consumer spending and its poor performance has heightened fears of a double-dip recession.
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