On Monday, the Co-operative Group managed to provide further evidence pointing to the delightful fact that the British supermarkets had enjoyed strong sales during the Christmas period. The mutually owned retail chain, however, did say in its trading update that it is concerned about the future as it expects the UK economy to experience some pressure until late 2010 or 2011's first half.

The Co-operative Group is the owner of Britain's fifth-largest supermarket chain, and last year, it has completed the takeover of Somerfield, a rival grocer, in a deal which had cost the Group 1.6 Billion Pounds.

In the 12 weeks up-to January 02, Co-op reported a 5.3% rise in its like-for-like sales in food stores, with stronger figures towards the later half of the period.

According to the company, the "local nature" of its outlets seemed to mean that it managed to pick up sales during the unusually chilly weather which was being experienced during the quarter. Also, the trading was nudged further ahead by a hike in the cash-back dividend that the firm was offering on many of its products.

"Looking ahead, we expect the economic pressures to continue until towards the end of 2010 or the first half of 2011", Chief Executive Peter Marks said.