UK number three supermarket Sainsbury's has officially started its recovery, according to chief executive Justin King.
The chain reported higher sales, citing improvements in its supply chain, enhancing availability of products to shoppers.
Like-for-like sales increased 3.7 per cent during the 12 weeks to 26 March against a year earlier, while sales excluding petrol were 1.7 per cent higher.
The group has been tackling issues in its IT department and delivery problems, which were previously blamed for badly disrupted its supply chain.
While price cuts have not yet attracted more consumers into its stores, Sainsbury’s said that they had helped to lift sales, as had increased business for Valentine's Day and Mothering Sunday.
"We recovered well from the Christmas and New Year peak trading period," said King.
He said Sainsbury’s still faces a battle in a competitive environment. “In these circumstances we are particularly pleased that we have seen an improving trend in sales,” he added. "Our major focus on availability is beginning to show results with both colleagues and customers noticing improvements in store.”
King expressed confidence that the group can achieve sales targets for 2005 and 2006.
While Morrisons' takeover of Safeway has created a larger challenger to the big three names, King said Sainsbury's may have benefited from the Safeway takeover.
"I think that the things we do really well - which is fresh food, the range that we offer, the service that we have at our counters - are all things that some customers are struggling to find in converted Safeway stores," he said.
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