Tesco's UK store sales up

LONDON: Tesco Plc, the world's No 3 retailer, posted quarterly sales growth towards the bottom end of forecasts, held back by a drop in food price inflation, but said a gradual consumer recovery remained on track.

"We are seeing improving customer confidence and encouraging trends in both the UK and our international businesses, although recessionary conditions still exist in a number of markets," Tesco Chief Executive Terry Leahy said.