Supermarket group Sainsbury's said it was catching up with the competition as it posted a rise in sales for the last three months.

The group said sales, including its supermarkets and Homebase stores, were up 9.2 per cent for the 12 weeks to June 24.

At its supermarkets, like-for-like sales, stripping out the effect of new store openings, were 3.1 per cet ahead, although excluding petrol sales, comparable sales at the supermarkets were ahead by a more modest 1.6 per cent.

The figures come two months after the retail giant reported profits had slumped 23 per cent in the last year because of poor performance at its supermarkets.

Sainsbury's said performance for the last quarter at its supermarkets was "encouraging" with its customers responding positively to its "deeper, more focused promotional activity".

However it added the figures were against weak comparatives and it said it was still at the early stages of improving store standards, levels of service and availability.

Sir Peter Davis, the chief executive who took over the helm at Sainsbury in March after a troubled year at the group said: "I am very encouraged by the increase.

"Industry figures from the Institute of Grocery Distribution show us to be catching up with our major competitors in the first quarter."

l Tight margins and "the Wal-Mart factor" of supermarkets increasingly focusing on non-food goods depressed UK sales of confectionery in the last six months, Cadbury Schweppes reported.

The group said the UK confectionery market had been "slow" but strong performances in its drinks businesses, particularly in the US led to a 17 per cent rise in profits before tax. Pre-tax profits for the half year to June 18, after taking into account one-off costs, were £295 million, up from £252 million.