Sainsbury’s reported a sixth consecutive Christmas of grocery market share gains as investment in value, quality and availability paid off.

Like-for-like sales for the 16 weeks to 3rd January rose 3.4% over the quarter, with grocery sales up 5.4% year on year and fresh food sales increasing by 8%, while Taste the Difference was the fastest-growing premium own-label brand in the market.

General merchandise and clothing remained under pressure and Argos sales declined amid weak consumer confidence and promotional intensity, but overall retail sales excluding fuel grew 3.9%.

The retail giant upgraded free cash flow expectations to more than £550 million and reiterated plans to return over £800m to shareholders this year, while maintaining guidance for retail underlying operating profit of more than £1 billion.