The supermarket giant revealed a global sales increase of 6.8% to £62.5bn for the 12 months to 27 February in its full year trading update.
UK sales rose 4.2% to £42.3bn.
Sir Terry Leahy, Tesco’s chief executive says the supermarket giant has “weathered the economic story well” by adapting cost structures and ranges to help customers “save money when they needed to and treat themselves when they’ve wanted to”.
He added that the chain is in a stronger position than it was before the recession.
Tesco says there are now 18% more households redeeming Clubcard vouchers than this time last year following a strong push to drive its loyalty programme by offering double points, better offers and more accessible with contactless Clubcard iPhone app.
Non-food sales rose 6.2% to £13.1bn, with £9bn in the UK while clothing sales grew by 7.3% reaching £1bn for the first time, driven by the launch of its online clothing range and an increase in children’s clothes.
Profit at Tesco Bank rose 13.1% to £250m while revenue dropped 9.4% to £860m.
Tesco’s online businesses saw a 14% increase in sales with profits rising 26% to £136m.