SIR Peter Davis said his recovery programme at supermarket group Sainsbury's was on the right course, as the chain reported a strong jump in sales.

The chief executive, brought in to revive the company's fortunes last year, said first quarter sales across the group were eight per cent higher than 12 months ago.

Like-for-like growth was six per cent, excluding petrol sales, as customers snapped up new ranges such as Taste the Difference, promoted by TV chef Jamie Oliver.

Sir Peter, who said the like-for-like growth rate had not been seen at Sainsbury's "for many years", said the supermarket had also benefited from greater investment in staff and more competitive pricing.

"A year ago, we were running behind the market and we are encouraged that today we are at least holding our own in a very competitive environment," he said.

The first quarter covers the twelve weeks to 23 June. In the year to March 31, Sainsbury's reported a pre-tax profit of £549m, down from £580m the year before. Like-for-like sales in the year were up 2.3 per cent.

Sir Peter drew up a three-year recovery programme on taking over at Sainsbury, outlining a store refurbishment programme and plans to save £600m.

He said Sainsbury's was on track to save £150m this year and that 37 more store refurbishments were planned for the second quarter.

He added that two new assistant managing director posts were being created at the group to help with the recovery.

These will be filled by marketing director Sara Weller and trading director Stuart Mitchell.

Sir Peter said that while the food industry was enjoying a buoyant phase, caused by high levels of disposable income and the aftermath of the foot-and-mouth crisis, the group was fighting back.

"I am confident that we are on the right course and starting to deliver a sustainable recovery," he said.

City analysts said that while the figures were good, Sainsbury's had been forced to spend more on marketing, promotions and increased staffing.