Tesco has posted its largest quarterly sales growth in the UK for two years, but says it is too early to call a recovery.

Like-for-like sales rose by 4.3% in the first quarter as improving trading in electricals, homeware and toys, as well as the Finest food range, boosted the supermarket group. The growth marks an improvement on the 3.7% increase of the previous quarter, but is still behind its main rivals.

Morrisons reported an 8.2% rise in like-for-like sales earlier this month, and Sainsbury’s is expected to post growth in excess of 7% today.

Tesco, which announced record annual profits for a UK retailer of £2.95bn in April, saw group sales excluding petrol rise by 12.6% in the quarter to 30 May.

Daily Telegraph