The boss of Sainsbury’s says it is “taking business away from our competitors” after a 3.4 per cent rise in annual sales to £36bn.
Simon Roberts said the country’s second-biggest supermarket was taking shoppers away from discounters Aldi and Lidl, as well as more expensive rivals.
It said its grocery business was “firing on all cylinders” as a strategy to “put food back at the heart” of the group bore fruit.
Food sales increased 7.3 percent in the fourth quarter and 9.4 percent for the year. However, other areas lagged behind.
Higher grocery sales helped profits rise 1.6 per cent to £701 million for the year to March 2.
Growth: Sainsbury’s said the return of staff to offices has boosted business as it posted a 3.4% rise in annual sales to £36bn.
Roberts added: “We have the best combination of value and quality and that is winning us customers from all of our key competitors.”
There has been intense competition among shopkeepers as households face the falling cost of living.
But Sainsbury’s said a price-matching campaign by Aldi helped it attract shoppers to the German discounter, which has seen its sales momentum slow in recent weeks.
The return of staff to offices also helped boost sales in stores.
It is another boost after industry data this week showed Sainsbury’s has been a star performer alongside major retailer Tesco.
Focus on food: Boss Simon Roberts said Sainsbury’s was taking buyers away from all its rivals
Kantar said its market share rose from 14.9 percent to 15.3 percent in the 12 weeks to April 14 compared with the same period a year earlier.
However, yesterday’s results revealed a disappointing performance for clothing, with sales falling 6.4 per cent.
Sales of general merchandise, including Argos, fell 0.5 percent.
It comes as the chain is set to refurbish stores to give more space for groceries.
Meanwhile, in a development that threatened to overshadow results, customers were furious after online orders were canceled yesterday due to technical problems.
Investors were unimpressed by Sainsbury’s update and the shares fell 4.3 per cent, or 11.4p, to 256.6p.
Retail analyst Nick Bubb said Sainsbury’s “food-first” strategy “seems to be paying dividends, but it will need to find a way to improve its performance in the non-food sector.”