Tesco has revealed a "strong" increase in food sales the last quarter as inflation eases.
Total sales at the country's largest supermarket grew 3.4% to £15.3bn in the 13 weeks ending May 25, compared with the same period last year.
There was higher demand for fresh produce too as the company reported a 5% increase in food sales.
Demand for high-range products also increase with sales of the Tesco Finest range noted as "particularly strong", while the company claims more shoppers are switching from other "premium supermarkets" to Tesco.
Ken Murphy, Chief Executive, said: "We've continued to build momentum in the business, with strong volume growth across the UK, Republic of Ireland and Central Europe supported by easing inflation.
"We continue to be the cheapest full-line grocer and are the most competitive we've ever been, with our value, product quality and service driving better brand perception and customer satisfaction. Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets."
He added: "We are looking forward to helping our customers celebrate a great summer of sport. We recently launched more than 100 new and exciting own brand products, including our Finest Dine In summer menu, based on classic pub dishes, and improved our Picnic & Deli, BBQ and Sweet Treat ranges.
"Tesco Finest growth was particularly strong in the quarter as customer perception of the quality of our products continues to improve.
"Following another strong quarter, we're pleased to reiterate our guidance for the full year, with sales trends in line with our expectations and the business well-positioned for the months ahead."
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Companies reporting today
- Tesco - Q1 Trading Statement