Sainsbury’s, which is Britain’s third-largest supermarket group, quoted that its sale has risen by at least 4.3 percent. This news was music to the ears of the retail sector and was effective in calming the concerns of investors. The retail major announced that it has reached its goal of 2.5 billion pounds of additional sales about three months ahead of what it had expected. This announcement lead to solid trading at Germany’s Metro, which boasted of a 10 percent rise in group sales. Thus the forecast that Europe’s supermarket groups will emerge winners during Christmas was proved right.

Sainsbury realized that food retail is till date one of the most defensive places in the retail sector. Thus it had taken the decision to speed up its non-food business selling toys, homeware, electricals, and clothing. This helped in having a positive impact on margins, Marco-Tobares said. King said the improvements made to Sainsbury’s business during its three-year recovery meant it was “well equipped to perform in this challenging environment”. He said he remained confident he could deliver its growth plans.

Shares of supermarket leader Tesco rose by 1.3 percent and WM Morrison Supermarkets had a 3 percent increase. Asda, which is part of Wal-Mart Stores Inc. was also happy with their Christmas sales.