Sainsbury's posted a 7% rise in first-half profit, at the top end of forecasts, outperforming rivals as a strategy of own-brand products(brand show) and fast growing online and convenience channels chimed with consumers.

The supermarket chain said on Wednesday it was "well placed" for more growth even though it cautioned that any recovery in the economy may take time to take effect.

Sainsbury's, which trails market leader Tesco by annual sales and is battling to be Britain's second largest grocer with Wal-Mart's Asda, made profit before tax of £400m in the six months to 28 September.

That compared with analysts' forecasts of £390-400m, with a consensus of £394m, according to a company poll, and was up from £374m last year.

Sainsbury's has enjoyed 35 consecutive quarters of underlying sales growth and its UK market share of 16.8% is its highest for a decade. It is continuing to outshine Tesco, which last month posted a 1.5% fall in first half UK trading profit.

First-half sales rose 4.4% to £13.95bn, while sales at stores(store fixture) open over a year, excluding fuel, were up 1.4%.

Online and smaller local convenience stores are the two fastest growing areas in the grocery sector as shopping habits change. Consumers are increasingly using the internet to shop and high fuel prices are discouraging trips to town centres and out-of-town malls.

Sainsbury's online grocery sales rose by 15% in the half, while convenience store sales increased over 20%.

The firm has also benefited from the success of its "Brand Match" price comparison scheme, increased sales of non-food products(food display), especially clothing, kitchen electrical and cookware, and its avoidance of any involvement in the horsemeat scandal.

Sainsbury's is paying an interim dividend of 5.0p, up 4.2%.