The supermarket giant battling with the rise of German discounters Aldi and Lidl said UK like-for-like sales in the six weeks to January 7 rose by 0.7 per cent, in line with analyst forecasts of growth of 0.3 to 1.5 percent.
Tesco also notched up a 1.8 per cent rise in third quarter sales, marking a year of continuous growth as its recovery under boss Dave Lewis continues.
He said in a trading statement: “We are very encouraged by the sustained strong progress that we are making across the group. In the UK, we saw our eighth consecutive quarter of volume growth and delivered a third successful Christmas.
“Our fresh food ranges proved particularly popular, outperforming the market with great quality, innovative new products and even more affordable prices.
“We are well placed against the plans we shared in October to become more competitive for customers, simpler for colleagues, and an even better partner for our suppliers, whilst creating long-term value for our shareholders.”
Mr Lewis, who has been leading an overhaul since he took over from Philip Clarke in 2014, aims to slash costs by £1.5 billion over the next three years to help boost margins and return the group to bottom-line profit growth.