Woolworths announced yesterday that a pick-up in sales over Christmas put it on course to make profits at the top end of City expectations.

The group, which has more than 800 stores, said sales were stronger last month and this month after a weaker showing in October and November.

Same-store sales were 0.8 per cent lower for the six weeks to January 14 - an improvement on the 3.9 per cent decline for the 50 weeks to that date.

That left the company on track for profits towards the upper end of forecasts, which range from £50m to £60m.

The group, which makes about 80 per cent of its sales over the festive season, said a drive towards more full-price sales increased profit margins.