British supermarket giant Sainsbury, which has seven outlets in Northern Ireland, proved it was turning the corner today as it unveiled improved profits for the first half of the year.
Chief executive Sir Peter Davis said the chain was making "excellent progress" as he showed underlying pre-tax profits in the six months to October 13 rose 3 per cent to £309 million sterling.
The lift follows strong sales growth over the first half, with like-for-like sales, excluding income from new stores, up 6 per cent.
It also comes despite an extensive refurbishment programme which has seen a number of stores closed for a makeover during the trading period.
Mr Davis said sales at 13 supermarkets refurbished in the first quarter of the financial year were now achieving an average sales growth of 10 per cent.
He added the business as a whole had continued to perform well in the five weeks since the half-year with sales remaining at "encouraging" levels.
Today's results compare with a slide in half-year profits this time last year when the first stages of Mr Davis’s revival strategy were being put in place.
He said: "I don't think any of us would this time last year, when we announced our recovery programme, have thought that in only a year we could have said sales are running at a record level and profits are back up again."
Mr Davis said Sainsbury's was much better prepared for the crucial Christmas season than 12 months ago. Its success now depended on the consumer.
"None of us know if confidence will hold up," he said.
Total sales across the supermarket chain in the first half rose by 7.5 per cent to £7.8 billion. Sales at the group's United States arm Shaws surged 8.4 per cent to 2.36 billion US dollars (£1.65 billion).