SAINSBURY's boss Sir Peter Davis said the supermarket chain was back "in the front pack" after it beat City expectations with a jump in sales.

Total sales surged 7.7 per cent in the 16 weeks to October 13, while like-for-like growth, excluding petrol, was six per cent.

The like-for-like figure, which strips out new store income, matched that of the previous quarter and was way ahead of analysts' forecasts.

"We are beginning to out-perform the industry as a whole," said Sir Peter. "We are now in the front pack and keeping pace with the leaders."

Sir Peter was brought in as chief executive at Sainsbury's in March last year to revive the chain's fortunes.

He said customers were responding to the focus on high quality products and improved customer service.

New ranges such as Taste the Difference were proving successful, while product availability was better, and waiting time at the checkout had been cut.

Trading figures for the second quarter of Sainsbury's financial year are a huge improvement on the growth rates seen last year.

Like-for-like sales failed to reach one per cent as Sir Peter put together a three-year recovery plan to put a stop to decline in market share.

The performance in the second quarter came despite the temporary closure of 40 stores for up to a week as part of an extensive refurbishment programme.

Sir Peter said Sainsbury's was well placed for Christmas and "would be turning the knob up" on value.

A £100m round of price cuts was announced last month, promoted under a Making Life Taste Better for Less banner.