Sainsbury’s extends sales growth

The chain said it continued to grow market share after like-for-like sales rose 0.8 per cent - excluding petrol forecourt operations - in the 12 weeks to June 8.

This was slower than the 3.6 per cnet rise in the final quarter of the previous financial year and below some City forecasts, although Sainsbury’s pointed out it was up against strong comparisons with last year’s Jubilee celebrations.

Chief executive Justin King said: “This has been a solid performance in what continues to be a tough consumer environment.”

The performance comes a week after Tesco reported a sales fall of 1 per cent in its first quarter, raising fears that its recovery plans have stalled.

Sainsbury’s has prospered with its ‘’Live Well for Less’’ offer to hard-pressed households squeezed by falling real wages.

Convenience store sales are growing by nearly 20 per cent on a year-on-year basis, fuelling speculation in the City that the company’s core superstore estate has seen a decline in underlying sales.

Over the quarter the company opened 19 smaller stores, refurbished a further 13 and is on track to deliver around two new stores per week over the year.

Latest retail figures from Kantar Worldpanel show it was the only one of the four large supermarkets to gain market share - with the others being squeezed by the likes of Waitrose and Aldi at opposite ends of the market.