High street supermarket chain J Sainsbury, which two years ago was being touted as a takeover target when profits slumped, demonstrated it was on track for recovery today with its fifth consecutive quarter of underlying growth.

Justin King, who took over as chief executive two years ago, said: "This is an important stage in our recovery and we are pleased that our progress is also confirmed by good market share growth."

The group, which has recently renewed its advertising contract with celebrity chef Jamie Oliver, said that in the 12 weeks to March 25 like for like sales, excluding petrol, grew 5.3 per cent. This is well above the market forecast range of between 2.5 per cent and 4 per cent and ahead of the 5.4 per cent hit in the Christmas quarter.

Total sales, including new space but excluding fuel, rose 6.5 per cent.

The chain has added a million customers in the past six months and has cut prices on more than 1,000 products.

Analysts say it now seems possible for Sainsbury to reclaim the slot as the UK's second largest supermarket group, which it lost to Wal-Mart's Asda.

Latest market share information puts Sainsbury at 16.2 per cent up from 16 per cent a year ago and compared with 16.6 per cent for Asda which had 16.8 per cent this time last year.

Market leader Tesco has a 30.4 per cent share of the grocery market.

King told Bloomberg television this morning that he expects to overtake Asda "in a few months".

Sainsbury's shares, which have underperformed the FTSE 100 benchmark index by 7 perc ent in the past 12 months, rose 2.14 per cent to 334p.

In a research note today, Seymour Pierce maintained its underperform recommendation saying the share price is "well ahead of the game".

Sainsbury's gave no further details on last week's departure of Tim Pile as chief executive of Sainsbury's Bank and said it would add nothing to the guidance given last November when the group indicated the bank would make a £10 million underlying loss this year after losing £5 million in the first half.

It said then that it no longer thinks the three-year profit target of £90 million will be achievable.

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