Sainsburys will create 2,200 jobs over the next 12 months as part of a multi-million pound expansion.
The grocery giant will open five new stores and extend four.
Details emerged as new figures revealed shop sales jumped 1.8% last month. It adds to hopes that the worst of the recession could be over.
Stephen Robertson, British Retail Consortium director general, said: July showed us both sides of the British summer.
Clothing clearance sales did well early in the month with good summer food sales as the heatwave continued.
The cooler, wetter second half of the month turned attention indoors. There are signs some people are using holidays to improve their homes rather than spending on going away. Howard Archer, chief economist at Global Insight, said big cuts to mortgage payments and power bills meant many in work had more spare cash. Some were now confident enough to splash their cash, taking advantage of the deep discounts in many stores.
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