Tesco, the world's third largest retailer, has reported a 7.2 per cent rise in third-quarter sales powered by strong overseas markets while a "steady consumer recovery" in the UK ahead of the Christmas period helped bolster sales in British markets to some extent.

In the 13 weeks to 27 November, like-for-like UK sales, excluding petrol, rose 1.5 per cent while its overseas sales growth increased by 4.1 per cent. Overall overseas revenue was up 11 per cent.

Tesco reported a 9.8 per cent increase in like-for-like sales in the United States which was its highest in terms of percentage sales growth.
However, British growth picked up to 3 per cent by the end of the third quarter and could improve further in coming weeks, Tesco finance director Laurie McIlwee said.

Tesco's group-wide total sales increased by 8.8 per cent as the retailer benefitted from a global economic recovery led by Asia with the firm exuding confidence that there was still good growth in the UK. However, tax hikes and public spending cuts aimed at reining in government debt could hit demand in the coming months.

Moreover, the continuing heavy snow in parts of the UK had impacted trading, but Tesco hoped to recover lost sales in the weeks ahead.