SUPERMARKET Sainsbury's has stepped up its performance after posting its first quarterly like-for-like sales growth for more than two years.
Britain's second-biggest grocer said like-for-like retail sales excluding fuel rose 0.1 per cent in the fourth quarter, compared with a fall of 0.4 per cent in the third quarter.
The upturn in sales is a significant boost for the Big Four grocer, coming after sales dropped 1.9 per cent a year earlier amid an ongoing supermarket price war.
The sales figures come just days ahead of the March 18 deadline for bettering its offer for Argos owner Home Retail Group.
Sainsbury's said it would create a "world-leading" retailer bigger than rivals John Lewis and Amazon UK when it tabled an improved £1.3 billion offer for Home Retail in February.
Since then, South African retailer Steinhoff has attempted to gatecrash the supermarket's cash and shares deal, with a £1.4 billion offer.
Chief executive Mike Coupe said the supermarket had delivered a "strong performance" in the fourth quarter, as it recorded like-for-like sales and volume growth while maintaining its market share.
He added: "We are progressing well with our quality investment in 3,000 own-brand products.
"The new year is traditionally a time when customers focus on healthy eating and to cater for this demand we launched a number of vegetable-based product innovations including boodles (butternut squash noodles) and courgetti (spiralised courgette) which are proving extremely popular with our customers."
Sainsbury's refused to be drawn on whether it would pitch a third offer for Home Retail before the deadline, but reaffirmed its position that it would not pay over the odds for the company .
Mr Coupe said: "The Argos bid is not a must-do deal at any price and if it doesn't go ahead then Sainsbury's will continue."
Alongside the fourth quarter like-for-like sales growth for the nine weeks to March 12, total retail sales excluding fuel also grew 1.2% over the period.
It is the first time the supermarket has seen like-for-like retail sales excluding fuel grow in a quarter since the third quarter of 2013/14 when sales edged up 0.2 per cent.
