The supermarket, which is the largest in the UK, said sales hit £9.08bn in its core market, representing like-for-like sales growth of 0.4 per cent. Read more: Tesco Bank quits ‘challenging’ mortgage market
Analysts had predicted growth in a range of flat up to one per cent. Last quarter the grocers reported sales growth of 1.7 per cent.
Tesco chief executive Dave Lewis said: “We have had a strong start to the year, growing ahead of the UK market on both a volume and value basis. “Our customer offer is more competitive than ever, with a wider choice of our “Exclusively at Tesco” products now available in more stores, helping to drive more than 10 per cent sales growth across the range.”
Read more: Tesco turnaround marks a milestone for drastic Dave Emma-Lou Montgomery, associate director at Fidelity Personal Investing, said: “Chief executive Dave Lewis may call the supermarket sector ‘subdued’ but what he really means is ultra-competitive. One of its fiercest rivals, Lidl, wouldn’t be opening 40 new stores in the south east in a less-than-buoyant market.” Group sales grew 0.2 per cent on a like-for-like basis, reaching £13.9bn. Online grocery sales were up seven per cent year-on-year driven by customers choosing to “Click and Collect” their orders.