Retailer Tesco today reported a better-than-forecast 5.9 per cent rise in underlying UK sales over the key Christmas period.
Analysts had on average forecast a 5.6 per cent rise in UK like-for-like sales excluding fuel for the six weeks to January 6th.
Tesco has trounced rivals in recent years by expanding abroad and entering new product areas such as clothes and financial services. Its share of the British grocery market is over 30 per cent, almost twice that of its nearest rival.
It said total sales were up 9.9 per cent excluding fuel in the six-week period, with international sales up 15.8 per cent.
However, Finance Director Andrew Higginson urged the Bank of England not to "over-apply the medicine" of raising interest rates, saying consumers were under pressure even before a surprise increase in the cost of borrowing earlier this month.
Britain's retailers have experienced mixed fortunes over Christmas, as debt-laden shoppers face higher interest rates and rising household bills. Supermarkets, with their cost-conscious appeal, have fared better than most.