Jan 10 - J Sainsbury, Britain's third-biggest supermarket group, expects to create over 20,000 jobs over the next three years as part of its store expansion programme, it said on Monday.

Sainsbury's in London

Sainsbury, which trails market leader Tesco and Wal-Mart's Asda in terms of annual sales, said in November it would open 1.5 million square feet of selling space in its 2011/12 financial year, up from 1.25 million previously, and continue its expansion in the years beyond.

The group, which currently employs around 150,000 people, is opening new supermarkets, expanding existing outlets to include more non-food ranges like clothing and homewares, and opening convenience stores.

Wm Morrison Supermarkets, Britain's fourth-biggest grocer, said on Monday it would create 6,000 jobs this year as part of its previously-announced growth plans.

Market researcher Nielsen said on Friday Britain's grocers had a good Christmas despite the disruption from severe weather which some retailers have blamed for a drop in sales, with Sainsbury's leading the top four players.

Sainsbury publishes Christmas figures on Wednesday.

(Reporting by Mark Potter, editing by James Davey)