Sainsbury’s has overtaken Asda as the second largest retailer in the UK after posting a 9 per cent rise in pre-tax profit to £433 million for this half.
Like-for-like sales rose 1.4 per cent and the retailer increased market share to 16.8 per cent bringing it just behind Tesco.
Online groceries grew by over 15 per cent year-on-year and now turn over £1 billion in annual sales.
Own-brand lines are growing at twice the rate of branded products and helped drive growth in a “tough retail environment”.
The company said fresh food is a “key strength” and highlighted its position as the country’s biggest retailer of British apples and pears, having sold one in every four bought in the UK. It also said this year it became the only supermarket to sell UK-grown fresh figs.
Chief executive Justin King said Sainsbury’s share of the grocery market is the highest it has been for a decade, following 35 consecutive quarters of like-for-like sales growth.
He said: “We are helping customers ‘Live Well for Less’ through high-quality, affordable own-brand products, brand match, and targeted coupon-at-till promotions.
“While customers' budgets remain tight and any recovery in the economy may take time to take effect, our consistent strategy means we are well placed to continue to deliver for customers, colleagues and shareholders.”
Chairman David Tyler said the company has had a strong first half to the year, outperforming the market in what remains a tough trading environment.
The retailer recently announced plans to open an online fulfilment centre in Bromley-by-Bow to meet growing demand for online groceries in London and the South East. The new facility will serve an additional 20,000 customers each week.
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