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UK grocer J Sainsbury Plc's revenues for the third quarter were on the lines of forecasts. The retailer has registered more sales in non-food items including clothing. The London-based Sainsbury has improved its sales performance during the third quarter.

J Sainsbury suffered 1.1 percent drop in the second quarter and improved in the third quarter, Same-store sales dropped 0.4 percent excluding fuel for the 15 weeks ending 9 January 2016. The analysts forecast 0.6 percent decline for the quarter.

According to a report by Bloomberg, Sainsbury is best performer during Christmas among the UK's mainstream grocers. Kantar World panel revealed that shoppers preferred to buy the different range of luxurious goods and food items. This has boosted the sales volume up by 18 percent.

Chief Executive Officer Mike Coupe finds the sales growth hard to come as the competition is increased from German budget chains Aldi and Lidl. The increasing market competition is forcing the CEO to plan for acquiring Home Retail Group Plc. Its Argos chain will augment Sainsbury's non-food business.

Sainsbury (J) Plc is the parent company of British supermarket chain Sainsbury's Supermarkets Ltd. The total retail sales during the third quarter were up 0.8 percent excluding fuel. The sales were down 0.7 percent including fuel, as reported by Nasdaq.

Clothing sales were up by six percent. General merchandise revenues rose five percent. Sainsbury further expects second half of the year will be encouraging. The overall decline during the first half was 1.6 percent. The retailer hopes to recoup this loss in the second half.

The Guardian reports that Sainsbury's Christmas sales were better than expected. The UK-based supermarkets are facing tough competition from German retailers such as Aldi and Lidl. Sainsbury is the Britain's second largest supermarket chain.

Bryan Roberts, an analyst at consultancy TCC Global, said: "These are pretty respectable results. Sainsbury typically outperforms at Christmas because shoppers are willing to spend a little bit extra."
Mike Coupe further explained: "We have traded well during the festive period in a highly competitive market. Our stores delivered excellent levels of service and availability and we launched several new seasonal products and range improvements. As a result we have seen our market share grow in the quarter."

Sainsbury's stock eased 1.3 percent to 248 pence in London Stock exchange as against the previous day's gain of 3l.3 percent. The association with Home Retail would enable it to shift its Argos stores into nearby Sainsbury outlets.