Sainsbury, Britain's third-biggest supermarket group, posted third-quarter underlying sales at the top end of forecasts, helped by soaring demand for its budget range as cash-strapped shoppers sought to save money.
The 140-year-old firm, which runs over 500 supermarkets and more than 275 convenience stores, said sales at shops open for at least a year, excluding fuel, rose 4.5 per cent in the 13 weeks to January 3rd.
Forecasts ranged from up 2.5 to 4.5 per cent, with an average of 3.8 per cent, according to a company poll of 13 analysts.
Sainsbury said it had its best ever Christmas, with customers exceeding £18 million a week over the quarter and reaching £22.6 million in the seven days before Christmas, including its busiest ever trading day on December 23rd.
The firm said its online sales rose 27 per cent during the quarter, helped by a record number of orders in the week before Christmas that contributed to its "best ever Christmas performance".
Demand was led by a surge of more than 40 per cent year-on-year in its budget "basics" range.
"The economic environment remains particularly challenging and we expect this to continue in 2009," Sainsbury Chief Executive Justin King said in a statement.
Britain's store groups are mostly struggling as shoppers cut spending amid rising unemployment, sliding house prices and fears of a deep recession.
The Bank of England is expected to cut interest rates later today to their lowest level since the bank was founded in 1694 in a bid to limit the downturn.
Reuters