Comparative like-for-like sales, excluding petrol, increased by 6.9 per cent.

The figure is up from from six per cent in the second quarter of 2008 and five per cent in the first quarter.

Asda said sales growth continued to be driven by a combination of increased customer numbers and higher basket spend.

Sales growth was in the "high single digits", excluding petrol, for the period up to September 30.

Asda said that at a time when customers were increasingly price conscious, it continued to drive its low cost agenda enabling it to fund lower prices for customers. As a result it has further strengthened its price advantage over its competitors.

It added that profit grew ahead of target with good cost control despite rising energy costs.

In food, Asda said it had invested £30m in improving product quality with blind taste tests showing its own label products out-performing comparable products from premium-led retailers.

General merchandise had outperformed all major general merchandise retailers over the period, with the strongest growth in baby, music, video and games. Asda also had its best ever Halloween performance.
The Asda Mobile network had also grown rapidly.

Sales of George clothing outperformed a difficult market, with Asda gaining share from its high street rivals.

The company said that, this year, year George had simplified its ranges, significantly improved product quality and bought higher volumes of "iconic" products. George had also launched a new marketing campaign using "real people not highly paid celebrities".

Online Asda continues the rollout of its home shopping service, which now covers more than 90 per cent of the UK population and is the UK's second biggest food home shopping business.

The business has opened fifteen new stores so far this year, including four new Asda Living stores, with a further six stores due to open in 2008.

Chief financial officer, Judith McKenna, said: "This is another strong set of numbers. We have continued to grow volume and gain market share each quarter this year by focusing on giving our customers great quality and outstanding value at a time when they need them most.

"Our strategy of being the lowest cost to operate supermarket is the right one, and is helping us drive down prices.

"We are absolutely committed to making life easier for hard-pressed shoppers."