Embattled retailers had a week out of the trenches as the market generally enjoyed some respite from financial turmoil.

General merchandisers were the biggest winners, but food groups also outperformed the All Share index.

Sainsbury’s defied the doomsayers, notching up fourth-quarter like-for-like growth of 4.1 per cent and signing a£1.2 billion joint venture with British Land.

Bernstein was impressed by trading “at the top end of expectations” and excited by non-food performance, which is key to future momentum.

Panmure Gordon, advising sell, was wary and said: “We believe that margin growth will be difficult to achieve in the tougher consumer environment and expect to see downgrades to consensus earnings.”

Citi sounded some caution on Tesco. The broker was disconcerted that US venture Fresh & Easy’s performance is unlikely to be separated out at results time. The broker labelled this “a 180-degree turn” from what Tesco had previously suggested and said: “It would not be surprising for the cynics to use this as evidence that management is disappointed by the early results.”

Topps Tiles house broker KBC Peel Hunt cut its forecasts after Wednesday’s update showed slowing growth. It said the shares were unlikely to perform until the consumer outlook was better.

Numis rated Topps a hold and said performance has been “creditable in a deteriorating market environment”. The retailer expects to report sales up 4.1 per cent over 26 weeks and like-for-likes down 0.5 per cent. Operating profit will be slightly down.

Beleaguered camera specialist Jessops reassured that full-year expectations would be met. The retailer, which chairman David Adams is battling to revive, disclosed a 5.1 per cent fall in like-for-likes for the 25 weeks and total sales – reflecting store closures – down 24.6 per cent. Jessops is taking further action to cut costs and improve efficiency.

Results from Anglo-French electricals group Kesa, owner of the UK’s Comet, impressed JP Morgan. Kesa, which posted a 7.2 per cent rise in 12-month interim retail profits to£194 million on sales up 10.6 per cent to£4.98 billion, is the broker’s sole UK overweight recommendation. Pali cut its price target by 50p to 250p, but thinks Kesa should trade at a premium to arch-rival DSGi.

Marks & Spencer ramped up its international presence with a joint venture in central Europe. Further stakebuilding by a Laura Ashley investment vehicle kept Moss Bros bid speculation alive.

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