Tesco announced profits in the UK were up but non-food sales including homeware showed a 'small decline'.

Total sales grew by 5.9% in the Q3, with like-for-like sales up by 3.2%, including petrol. However, excluding petrol, like-for-like sales rose by only 2%.

Given current economic conditions the results are pretty positive, however with rivals Sainsbury's announcing pre-tax profits up 13.3% to £272m last month, Tesco chiefs will be disappointed.

Tesco preferred to highlight the fact overall sales, driven by success in the international market, for the thirteen weeks ending 22 November increased by 11.7%.

Chief Executive, Terry Leahy said: "We are pleased with our progress but we are also realistic - the current economic climate, and the strain this is putting on consumers everywhere, is something all businesses are feeling, including ours.

"Overall, double-digit sales growth has continued, with International delivering a particularly strong performance, despite slowing demand in some European markets."

Mr Leahy was still upbeat about UK conditions saying 300,000 more customers a week were using their stores and non-food sales were 'holding steady'.

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