Sainsbury’s has announced that sales across its premium food range have jumped by nearly a fifth, as the British supermarket chain makes headway with the ‘Next Level’ strategy it launched in February.

The strategy aims to boost grocery market volume share gains at the retailer by bringing more of its food range to more customers.

Sainsbury's said that its results demonstrate that its food range is "going from strength to strength", with the supermarket making the "biggest market share gains in the industry".

“Food is at the heart of our business and our impressive rate of innovation is powering market-beating growth,” wrote Sainsbury’s chief executive Simon Roberts on LinkedIn. “Taste the Difference is in nearly two out of every three big shops and sales are up 18 per cent in the quarter – the strongest premium private label growth in the market.”

While the company's results were largely positive, with overall grocery sales up by five per cent, Roberts told media that Sainsbury's could increase prices following the recent changes to employer National Insurance contributions (NICs) outlined in the chancellor’s Autumn Budget.

According to the chief exec, the 1.2 per cent hike in NICs for businesses will cost Sainsbury's an extra £140 million next year.

The supermarket's latest financial results, which cover the 28 weeks ended 14 September, revealed that Argos sales were down by five per cent following a tough first quarter for the company.

"Argos trading has improved through the second quarter and in more recent weeks, so we continue to expect to deliver strong retail underlying operating profit growth and free cash flow generation for the full year," said Roberts in a company statement.

Part of the new Next Level strategy aims to build on Argos' strength in convenience and value by growing frequency and spend through improved range and relevance, while also delivering further operating model efficiencies.

Sainsbury's latest strategy builds on the company’s Food First strategy, which it announced in November 2020.

The strategy aimed to put food “back at the heart of Sainsbury’s”; reset its competitive position in the market; and develop a strong financial platform which the company plans to grow.

With its Next Level strategy, Sainsbury's also plans to expand on its existing Nectar loyalty scheme by offering personalised, rewarding and integrated loyalty and market-leading retail media capabilities.

Additionally, the company is planning to invest in capabilities across technology and infrastructure, as well as deliver another £1 billion of structural cost reduction.

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