Sainsbury's stock soared this week as investors were informed of ambitious plans to save £600m a year by 2004 and lift operating margins to a level "comparable with the industry leaders". Shares beat off competition in the FTSE 100, climbing 7% after the announcement. Analysts welcomed chief executive Peter Davis' admission good food will cost more at Sainsbury, which will compete with Tesco on quality rather than price. Sir Peter promised to match Tesco's prices on 1,000 lines but remain slightly more expensive on other product lines. "People get what they pay for," he said. "Customers are used to paying a bit more and getting a lot more in return." Cost savings would be achieved through buying efficiencies and improvements to the supply chain and IT. {{NEWS }}