Simon Roberts, chief executive of Sainsbury’s, said people were buying more in its stores as prices fell.
He said Sainsbury’s had spent £118m since March on lowering prices and swallowing cost increases, and was now attracting shoppers from all its competitors, including discounters Aldi and Lidl.
Mr Roberts said: “We know people are still finding things tough and we’re working harder than ever to reduce our costs, putting the money back into our customers’ pockets through lower prices on the products they buy most often.
“I’m pleased to say food inflation is coming down and we are passing savings on to customers.”
Figures from the British Retail Consortium earlier this week found that inflation hit a 14-month low in October, amid fierce price cutting between supermarkets.
The BRC data suggested that price rises dropped to 5.2pc in October, compared to 6.2pc in September.
Mr Roberts said: “As we head into this key trading period, we are encouraged by our strong momentum and we remain fully focused on delivering for customers and shareholders.”
Thursday’s figures revealed grocery sales were up 10.1pc in the first half of the year at Sainsbury’s. However, this was offset by weaker sales in its clothes division and the Tu brand.
Sales in Argos were up 3.3pc after it bulked up the range of products sold.
Overall revenues were up 3.5pc, excluding VAT but including fuel.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
