UK grocer Sainsbury’s has reported a particularly strong performance by games and technology during the Christmas trading period in its annual fiscal report – and pledged to up its non-food offering over the next two years.

The company has also announced that half of all new in-store space built until March will be allocated to non-food products and said that, over the three years to March 2010, its expects non-food products to account for a third of total sales growth.

Sinsbury’s has also confirmed that it will launch a non-food products online service in 2010, and that it will invest £30m investment in its non-food operation in the interim.

By the end of March 2010, 60,000sq ft larger stores will have over 15,000sq ft of non-food merchandise.

The firm highlighted ‘a particularly strong performance in games, small electrical appliances and new technology such as MP3 players, digital cameras and satellite navigation systems’ in the Christmas period.

For the 12 months ended March 22nd, 2008, the retailer reported sales of £19.29 million, up 5.8 per cent year-over-year.

Operating profit rose 24.1 per cent, from £431 to £535 million.

Sainsbury's told MCV late last year that it would be increasing its video games offering in 2008.