The UK's second largest supermarket, Sainsbury's, has raised its profit guidance after "record" sales during Christmas week.
Sainsbury's said it now expected pre-tax profits to be slightly higher than £559m despite supermarkets facing a "challenging" market.
The chain sold 1.1% more in the last three months, as higher grocery sales made up for lower non-food sales.
Boss Mike Coupe pointed to growth in online orders and premium food ranges.
The company also expects to save an extra £40m as part of a £500m cost-cutting drive that includes axing 2,000 jobs.
Mr Coupe told the BBC that rising food prices had helped grocery sales rise 2.3% in the 15 weeks to 6 January.
He predicted that food price inflation would start to come down over the next six to nine months.
The supermarket said more customers bought their main Christmas meal at Sainsbury's, with sales of turkey and other trimmings up compared to its rivals.
It processed over 340,000 online grocery orders during Christmas week and sold more of its Taste The Difference range.
But Sainsbury's, which also owns Argos, saw sales in general merchandise fall 1.4% despite a strong Black Friday.