THE UK's biggest supermarket chain Tesco made an "outstanding" start to its financial year after interim profits surged 17 per cent to £628m.
Strong growth home and abroad helped overall sales up 17 per cent to £14.9bn in the six months to August 9.
In the UK alone, Tesco enjoyed a 14.2 per cent sales rise to £12bn, with the increase on a same-store basis ahead of market expectations at 6.2 per cent. The recent warm weather had been among factors helping demand, the company said.
Overseas, where Tesco employs 75,000 of its 300,000 staff, the company said sales rose 30 per cent to £3bn with operating profits up 66 per cent at £98m.
The international portfolio includes Poland, Hungary, the Czech Republic and Thailand, with Tesco exploring opportunities in China and Turkey.
Despite its position as the UK's largest supermarket chain, the company said there was still "a lot left to go for" in the UK. The company has ambitions to become as strong in non-food items as it is in groceries.
It will also look for further growth in the convenience store sector following the acquisition of 860 One Stop shops from T and S Stores last year.
Tesco is converting the outlets to Tesco Express stores at a rate of four a week, a process which will create about 1,400 new jobs.
* Reports suggest that the battle for the Safeway supermarket group could be resolved as early as next Thursday.
The Department of Trade and Industry (DTI) is rumoured to be on the brink of an early decision after initial expectations it would be October at the earliest.
The DTI has to rule on a Competition Commission report into possible issues posed by Safeway being sold.
Wm Morrison, due to report interim results tomorrow, is tipped as the front runner.
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