Full-year profits at Britain‘s second biggest supermarket have beat expectations, with total sales rising 0.3% for the second quarter. 

Like-for-like sales were down 1.1% during the 16 weeks to September 26, the seventh straight quarter of declines for the retailer. 

Sainsbury‘s has been stuck in an ongoing price war with its rivals. Food prices have deflated in the midst of a race to discount items, with German rivals Aldi and Lidl becoming increasingly prominent threats to the market shares of the ‘big four‘. 

“Whilst the market is clearly still challenging, with food deflation impacting many categories, we are making good progress on delivering our strategy,” said CEO Mike coupe. 

The supermarket continued to “enhance” the quality of its own-brand products. “‘Taste the Difference‘ volume grew by over 4% in the quarter and was voted the best supermarket range by Good Housekeeping for the third year running,” Coupe continued. 

Clothing also grew by almost 13% in the quarter, bolstered by the success of the Back to School campaign and the Tu range now trading online. 

Sainsbury‘s opened