THE revolution at Sainsbury's under chief executive Justin King continued today, with another jump in sales that may finally have persuaded the City of the company strategy.
Like-for-like sales in the 11 weeks to 21 March grew 6.2% as customers from all income brackets flocked to the stores.

City analysts have been predicting for some time that Sainsbury's would lose out in the face of the recession as consumers traded down to supposedly cheaper grocers.

King has always insisted his Basics range and the Feed Your Family for a Fiver campaign would ensure that the turn-around of the company continued. He will have been at the helm for five years on Monday and is facing growing talk that he may soon look to move on.

“Not at all,” he said today. “I couldn't be happier.”

He declined to comment on speculation he is in line to succeed Sir Stuart Rose at Marks & Spencer, when the retail knight eventually steps down.

Sainsbury's shares have enjoyed a good run lately but today dipped 61/2p to 3241/4p.

“These are very strong figures,” said King. “This is a step up from the last quarter and the message is that much of the work we have done over the last five years is paying off. We have responded to a change in customer circumstances and it struck a chord.”

Asked about City perceptions of the company, he replied. “A year ago there was a feeling that Sainsbury's would be one of the victims. The tone is now generally complimentary, I think.”

He argues that yesterday's shock inflation figures showing a rise in the cost of living are a mere blip.

Sainsbury's believes the environment will “remain challenging” but King says falling mortgage costs mean there is much less pressure on the consumer than a year ago.