Sainsbury's profits see 11% surge

Its underlying profits haul means 120,000 staff will share a bonus pot of £60 million, up from last year's £47 million payout.

The UK's third biggest supermarket, which is celebrating its 140th anniversary, said like-for-like sales rose 4.5%, excluding fuel, in the year to March 21.

Sainsbury's hailed its ability to appeal to "savvy" shoppers in the recession as it now sees more than 18 million customers pass through checkouts each week.

But chief executive Justin King said it had been a "very challenging period for the UK retail industry".

The profits came in slightly higher than the £526 million expected in the market.

While the growth is less than half the 28% surge seen the previous year, it compares well with the 8.8% hike in annual profits seen at market leader Tesco and the 7% rise at Morrisons.

Sainsbury's has been stealing market share from Tesco as value-conscious consumers shop around for the best deal, with the latest TNS Worldpanel data showing Sainsbury's now accounts for 16.3% of the sector.

Its Jamie Oliver-led Feed Your Family For A Fiver campaign has been well received by shoppers, while sales of its basics range have soared - up more than 60% year on year in the final quarter.

The group's product range has provided customers with the option to "change what they buy, rather than where they shop", Mr King said.