Tesco has reported a 3.5 per cent like-for-like sales uplift, excluding petrol, in its first quarter for its domestic market, but warned that its rate of growth for non-food has eased as consumers become more cautious.

For the 13 weeks to May 24, total sales for the UK grew 9.4 per cent, but the grocer warned that non-food growth had slowed, although it claimed it had gained market share. In its international business, sales increased 26.6 per cent at actual exchange rates and 13.9 per cent at constant rates.

In Europe, the UK’s largest retailer reported sales soared 32.4 per cent at actual rates and, in Asia, they jumped 16.7 per cent.

Tesco chief executive Terry Leahy said: “We made solid progress in the UK in the first quarter. Core food categories showed good growth as we helped consumers spend less at a time when household budgets are becoming stretched.

"Although food performance has been good, our rate of growth in non-food has eased as consumers have become more cautious with their spending during recent months."

In the international division, it will deliver more than 9.8 million sq ft of new selling space this year. This excludes the space it acquired through the recent Homever buy in Korea.

Leahy added: “We’ve made a good start to the financial year thanks to the growing breadth of the group and the strength of the Tesco business model – this has been achieved despite the more uncertain economic environment.

“Our international operations continue to grow strongly; we’re pushing on well with new store developments in our established markets and our expansion into new markets, including the US.”

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