Sainsbury's has said this Christmas was its best ever as customer transactions rose 1.5 million over the festive period to increase the retailer's market share.
The supermarket's total sales for the 14 weeks to 7 January 2012 were up 7 per cent or 4.5 per cent excluding fuel while like for like sales rose 4.8 per cent or 2.1 per cent excluding fuel.
Two year like for like sales increased 5.7 per cent while the supermarkets market share increased to 26 million.
Despite Sainsbury's gains, according to retail analysts Kantar Worldpanel, Asda was the winner among the big four supermarkets over Christmas.
It achieved 10.7 per cent sales growth in the four weeks to December 25, helped by the purchase of Netto UK.
Tesco's sales growth was less than the other major multiples in the run-up to Christmas, rising by 3.8 per cent by value in the four-week period, Kantar said.
The UK's number one supermarket created an “aggressive response from its competitors and put pressure on its share, which has slipped from 30.5 per cent a year ago to 30.1 per cent,” Kantar said.
Sainsbury's chief executive Justin King said it was a strong quarter for the retailer despite the economic backdrop.
"This was a record-breaking Christmas, with our biggest ever week, day and hour for sales as customers celebrated with Sainsbury‟s quality food. Taste the Difference grew by over 10 per cent in the quarter. [The] basics [range] also grew strongly, especially staple ingredients. For example, sales of basics unsalted butter increased by 82 per cent and basics dried fruits were up 30 per cent, reflecting the growth in home baking.
"Brand Match has been a big hit with customers, who increasingly recognise the great value for money that Sainsbury‟s offers."
In the last quarter, Sainsbury's added over 600,000 square feet of new space, including its 1000th store in Irvine, Scotland and 21 new convenience stores.
King said Sainsbury's expects customers to spend cautiously in 2012, "particularly in the first few months as they tighten their belts post Christmas".
However, King said that while the short term remains challenging, key events later in the year, such as the Queen‟s Diamond Jubilee and London 2012 Olympic and Paralympic Games, should provide opportunities for growth.
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