J Sainsbury set out plans for an aggressive expansion in its domestic market, putting further pressure on rival Tesco, after raising about £445m in a stock and bond issue.

Announcing first-quarter like-for-like sales growth of 7.8 per cent – ahead of Tesco’s 4.3 per cent – Justin King, chief executive, said the money would be used to open 50 new supermarkets, and extend another 50 over the next two years, helping to create about 10,000 jobs.