Tesco sales up by 12%

British shoppers' love affair with Tesco shows no sign of waning as the supermarket unveiled yet another huge surge in sales.

The company said that its UK sales jumped by 12.2 per cent during the autumn, a period when most British retailers have struggled.

Tesco, which is expected to make profits of around ? 2billion this year, said that its petrol forecourts had enjoyed a particularly good quarter.

Motorists flocked to the low fuel prices on offer there at a time when petrol prices were soaring elsewhere.

Tesco said prices inside the stores fell slightly for the second quarter running as part of its efforts to keep the pressure on competitors such as Sainsbury's and Asda.

It described the latest figures as "a strong performance" that puts Tesco in a prime position as the Christmas trading season gets into full swing.

Latest independent figures show Tesco has added more market share in recent weeks, making it one of the most powerful retailers in Europe.

Its fast-growing overseas empire is also doing well, with sales growing by 18.2 per cent in the 14 weeks to 20 November.

The figures came after disastrous results for Sainsbury's, which blamed a poor supply system for leaving shelves unstocked, forcing the company to report the first loss in its 135-year history earlier this month.