Tesco's like-for-like sales, excluding petrol, rose by just two per cent rise in the UK for the third quarter, the lowest rise in growth since 1993. However, total group sales rose 11.7 per cent thanks to strong international performance.

Worldwide, sales were up 28.1% based on actual exchange rates with particularly strong growth in Asia of 29.4 per cent.
 
Chief Executive Terry Leahy said, "We are pleased with our progress but we are also realistic. The current economic climate, and the strain this is putting on consumers everywhere, is something that all businesses are feeling."

"Our rapidly expanding international operations have delivered excellent growth, the core UK business has made solid progress and our non-food ranges – helped by Tesco Direct – have performed remarkably well in very subdued conditions," he said.

Tesco is the UKs largest supermarket chain and says it is attracting 300,000 more customers a week driven by the early success of its new ‘Discounter’ products and related changes.

"We are adjusting the business to meet the new challenges - focusing on becoming even cheaper for customers. As we apply all the resources of the Group to these priorities, I remain confident that Tesco can maintain a strong business performance and pursue its long term strategy even in tough times.”

"The expected completion in the next few weeks of our acquisition of the remaining 50% of Tesco Personal Finance (TPF) from Royal Bank of Scotland Group will mean that we can press on with our exciting growth plans in that market," he said.

Read the full interview with Sir Terry Leahy