The group reported pre-tax profits up 1.5% on last year to £1.42bn. Group sales were up 8.3% to £30.4bn with UK like for like sales up 2.7%.
Tesco chief executive Terry Leahy says: “Our focus on the customer, the consistency of our strategy, an efficient business model, strong local management teams, and a spirit of innovation and knowledge-sharing, have enabled us to improve the shopping trip for customers – by investing in consistent value they can trust and in rewarding their loyalty through Clubcard – whilst at the same time delivering a robust financial performance.”
The retailer is seeing growth in its Finest food range, which it says shows that customers’ optimism is returning.
Tesco non-food business has proved to be “resilient”, up 4.9% during the period adding it is expected to emerge from the downturn in a strong position.
Sales of clothing in the UK grew by 6.6% in total boosted by a back-to-school campaign while the online business achieved an 11% sales increase.
The group also announced it is to rename its financial division Tesco Personal Finance as Tesco Bank as part of a plan to create a full-service retail bank.
Rival, Sainsbury’s is expected to post a 5.6% rise in sales tomorrow (6 October).