Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Sainsbury’s festive results showed just why it’s put on serious weight to become the UK’s second-largest supermarket.
“The business is hungry for more business, and thanks to its ongoing drive to improve its quality, value and service, it’s managed to gobble up market share from the competition for the sixth consecutive festive season.
“Its Taste the Difference range has also found a winning formula, becoming the fastest-growing premium own-label brand in the market, with sales up 15 per cent.
“Keep in mind that Sainsbury’s is more exposed to general merchandise than its peers, owing to its ownership of Argos.
“General merchandise is the most cyclical area of the supermarket economy to be in, so being overweight in this arena can really slow sales down when things get tough.
“Recent initiatives are helping to drive higher sales volumes at Argos, but consumers remain cautious and are steering clear of big-ticket items.
“The net effect is lower average sales prices and a one per cent decline in Argos’ sales over the festive period.
“All in, it was a solid third-quarter performance from Sainsbury’s, and full-year operating profit guidance of more than £1.0bn remains on track.”
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