Price competition drives international growth
Tesco has again outperformed the rest of the sector over its first quarter, with total sales gains of 14.6 per cent.

In the 12 weeks to May 21, the retailer grew its international sales by 27 per cent on actual exchange rates, with like-for-like sales up 5 per cent, partly because of the retailer's commitment to price investment in its Central European divisions.

The retailer also grew its UK business, with like-for-like sales growth of 8.8 per cent, driven by strong sales volumes and little price deflation over the period. Excluding petrol, like-for-like sales increased by 6.8 per cent.

Tesco chief executive Terry Leahy said: 'Our strong sales performance has put us in a good position to meet the demands of higher oil-related costs across the group, rising business rates in the UK, the initial cost of our price investment in Central Europe and a tougher market for Tesco Personal Finance.'