Environment

Sainsbury's has attributed the 11% increase in first half pre-tax profit to £258m to its quick reaction to consumer demand for value for money in the current economic climate.

The supermarket giant, which reported increased sales of £10.8bn for the period to 4 October, said it has improved the ranging and quality of its own-brand products, which account for 40% of its sales.

The increase in sales of takeaway boxes shows the trend toward of eating at home, it added.

Justin King, chief executive, said: "With around 18 million customers a week we work hard to listen and respond to their needs and this has been particularly relevant during the first half of the year as shopping patterns have changed significantly and in a relatively short space of time.

"Getting the best value for money is even more important to consumers when household budgets are stretched. Customers are now buying a different mix of products and we have successfully developed our offer to help offset the rising cost of living and tighter household budgets."

The supermarket giant said that shelf-ready packaging continued to improve replenishment and that the removal of automated equipment has improved the efficiency of its supply chain.

It revealed that its SO Organic range has increased to more than 450 products, 90% is in home-compostable, recyclable or re-useable packaging.

Sainsbury's said it has achieved a 28% reduction in free bag usage since April and is more than half way to its target of 50% by April 2009.

It's latest initiative to cut the use of single-use carrier bags, launched in October, was the removal of free carrier bags from visible display on supermarket checkouts although free bags are still available on request.

The supermarket also offers Nectar points for shoppers re-using bags or using 'bags for life'.

The supermarket giant also announced plans to accelerate the growth of its convenience operation following a review of the business. It said 50 new stores are planned for 2009/10, with a further 100 the following year.

It said it opened six supermarkets in the first-half of the year and 13 were extended – adding 244,000sq ft of new space.