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Tesco sees first quarterly sales growth following torrid three year profit drought

Supermarket chain Tesco is back on the front foot after posting its first quarterly sales increase for three years.

Positive numbers saw the business record a £162m pre-tax profit for the year to the end of February after UK like-for-like sales edged higher by 0.9 per cent, reversing an epic £6.3bn loss last year.

Hailing the turnaround chief executive Dave Lewis said ‘significant progress’ had been made in stabilising the company. He added: “Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case.”

Following a disastrous recent financial performance Tesco has sought to focus on lower prices and more staff in a bid to lure people back through its famous red, white and blue warehouses – moves which now appear to be bearing fruit.

Tesco still has a fight on its hands amidst deflation in food prices following the arrival of Aldi and Lidl with a cut-throat sector likely to impede profits going forward.

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