Sainsbury's was in buoyant mood this week after exceeding its three-year sales growth targets by almost 10% and said it was confident it could maintain the momentum.

At its fourth-quarter trading update, it revealed it had delivered £2.7bn sales growth since March 2005, outstripping the £2.5bn target set in its Making Sainsbury's Great Again plan. Like-for-like sales, excluding fuel, for the 12 weeks to 22 March rose 4.1% representing a 13th consecutive quarter of growth.

Finance director Darren Shapland said that despite tough comparables and the anticipated economic downturn, the company was well placed to deliver continued growth. "We're excited we've achieved the targets the market thought were difficult to achieve," he told The Grocer. "We came from a low point in 2004/05 where profitability and returns were not acceptable, and profit and sales are now at an acceptable level.

"We believe 3%-4% sales growth is achievable over the next two to three years."

CEO Justin King drew particular attention to Sainsbury's performance in non-food, which now accounts for 15% of turnover and is growing at three times the rate of food. The biggest growth drivers are Sainsbury's clothing lines and its electrical and entertainment products.

"Non-food has significant growth potential as we continue to implement our plans," said King, adding that quality and value remained the cornerstone of its food strategy.

The update came as Sainsbury's launched its Jamie Oliver-backed Food for A Fiver campaign offering consumers a range of healthy, cook-from-scratch recipes to feed a family of four for under £5.

It also unveiled a £1.2bn property joint venture partnership with the British Land Company that will create an extra 500,000 sq ft of net selling area across its portfolio. Sainsbury's will invest £273.3m in the 50:50 joint venture to hold and develop 39 superstores over the next decade. The venture will allow Sainsbury's to "unlock the potential" of these stores, said Shapland.

Last March Tesco secured £570m of funds from a sale and leaseback agreement with British Land.

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