GROCERY giant Tesco's domination of the UK market shows no signs of weakening after it unveiled another strong rise in sales.

The group, which announced full-year profits of £1bn in April, said like-for-like sales in the past three months were 6.7 per cent ahead on last year.

Tesco added that it planned to reward shoppers with a further round of price cuts on Monday worth £60m.

Terry Leahy, chief executive, said strong growth was achieved across the group, with international sales ahead by 50 per cent during its first quarter.

He said: "This is an excellent performance by the whole Tesco team at home and abroad, reflecting the strength of our strategy."

The trading update from Tesco, ahead of its AGM yesterday, also shows the growing importance of non-food items.

During the three months to May 19, sales in Tesco's home entertainments business rose by 40 per cent on a like-for-like basis. That contributed to an overall increase in group sales of 14 per cent, with total UK sales ahead by 9.8 per cent.