British retail chain Sainsbury's has surpassed its rivals -Tesco, Asda and Morrisons - in the grocery business, show sales growth figures posted by the company on Wednesday.

Sainsbury's has outperformed market leader Tesco for the second quarter, and might be on its way to replacing Asda as the UK's second largest supermarket chain.

Sainsbury's like-for-like sales accelerated from 1.1 per cent in the first quarter to 2.9 per cent in the second.

Total sales for the period, not including fuel, showed an increase of 5.9 per cent.

The Guardian quoted company chief executive Justin King as saying: "It is very clear that we have reported the best performance over the last three to four months. When you look at everybody, we're not a nose ahead - we are a good way ahead."

The company said all its operations - supermarkets, online shopping and its chain of convenience stores, Sainsbury's Local - had shown healthy sales, with Sainsbury's Local surging beyond £1bn in annual sales for the first time.

Non-food sales, particularly the retailer's Tu children's clothing line, were expanding at thrice the pace of the grocery trading.

King confirmed Sainsbury's plans to add 1.5m sq ft of new space in 2010/2011 and also said that the company is considering expanding overseas.