Britain's second biggest grocer, Sainsbury's, has stepped up its performance announcing on Tuesday its first quarterly like-for-like sales growth for more than two years.

Retail sales at the supermarket excluding fuel rose 0.1% in the fourth quarter compared with a fall of 0.4% in the third quarter.

The increase in sales is a significant boost for the Big Four grocer after sales dropped 1.9% a year earlier amid an ongoing supermarket price war.

Chief executive Mike Coupe said the supermarket had delivered a "strong performance" in the fourth quarter, as it recorded like-for-like sales and volume growth while maintaining its market share.

The sales figures come ahead of the March 18 deadline for bettering its offer for Argos owner Home Retail Group.

Sainsbury's tabled an improved £1.3 billion offer for Home Retail in February but South African retailer Steinhoff has attempted to gatecrash the supermarket's cash and shares deal, with a £1.4 billion offer.