TJ Hughes, the discount department store, saw like-for-like sales rise 8.9% for the five weeks to January 3.
TJ Hughes said it expected overall sales for the year to be up 8.3% on last year and profits will also be ahead.
Menswear and lingerie were among the best performing categories.
TJ Hughes attributed its success to a marketing campaign that ran throughout 2008 to raise awareness of the store’s product mix.
Chief executive Sue Tennant said: “Trading in this [the Christmas] period has been challenging but at TJ Hughes we have stuck to our knitting, offering famous brands at unbeatable value across all departments. Putting the customer at the centre of our business and the constant review of our performance has driven a trading environment which discourages complacency by constantly questioning the proposition we offer.”