Sainsbury’s has delivered a “strong finish to a good year” with a like-for-like sales increase of 2.5 per cent in its fourth-quarter and a 4.5 per cent rise over the year.
Chief executive Justin King said the results for the 10 weeks to 17 March show Britain's number three retailer is gaining ground on Tesco.
"Tesco have had a tough time of late, their sales are not growing whereas our sales are growing strongly," King said in an interview with Sky News.
"So I think that shows customers are choosing Sainsbury's over Tesco for some of their shopping."
King also said in a statement that the quality of food Sainsbury's offers underpins its performance.
"We have invested over £85 million this year to make our fresh food better than ever, and this is delivering real results,” he said.
“Customers rate Sainsbury’s best for great tasting food. Our own label participation continues to lead the market, reflecting Sainsbury’s reputation for great quality at fair prices.
“Sales of basics grew by 10 per cent and Taste the Difference grew by almost 20 per cent."
Total sales for the fourth quarter were up 4.6 per cent and Sainsbury’s achieved its target of increasing its convenience space by 7.3 per cent over the year. It also said online and non-food are all growing ahead of market.
King said Sainsbury’s remains focused on ensuring its values make it different.
“We are making good progress against the commitments we set out in our 20 by 20 sustainability plan. As the largest Fairtrade retailer in the world, we sold over £12 million of Fairtrade goods during Fairtrade Fortnight, 11 per cent more than last year,” he said.
“In the quarter we also announced our investment in Tamar Energy, a company set up to produce energy from organic waste. For the second year running Business in the Community has awarded Sainsbury‟s Platinum Plus status in its Corporate Responsibility Index, the top accolade.”
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