UK number one supermarket Tesco is confident that its international sales should help offset any weakening in the UK market.
Tesco has announced a sales rise of 10 per cent in the 13 weeks to May 26, pushed along by Asian and other overseas demand.
Sales grew by 10.4 per cent in the same period a year earlier.
In the UK, like-for-like sales excluding petrol gained 4.7 per cent, while sales outside the UK were up 24.6 per cent at constant exchange rates. Asian gains were highest, jumping 32 per cent year on year at constant rates.
"We've made a good start to the year across the group," said chief executive Terry Leahy.
"International is delivering particularly strong growth; pushing on well with both new store development and the integration of the stores we acquired last year," he explained.
Leahy also said that the company's plans to open in the US later this year were well on track.
Shares have dropped three per cent in early morning trading, after the chain admitted it expects a “tougher year” in the UK, amid concerns that higher borrowing costs will weigh on consumer demand.
