Sales grow twice as quickly as food
Tesco's strategy to make it as successful in non-food and it is in food is heading in the right direction as the proportion of its sales represented by non-food rose to 25% (excluding petrol).

Sales growth, in the UK alone, was 11.6% in the year, with total non-food sales increasing to £7.6bn.

Product groups which fared well and to which Tesco allocated more space in its larger Extra stores, included toys and sports goods (up 30% in sales), consumer electronics sales (rising by 35%, stationery and diy (both up by 23%).

Tesco added that customer response to its Direct offer has been 'very encouraging' while Homeplus - six non-food trial stores - have generated 'pleasing' results.

The most recent trial store in Chelmsford, trades from 50,000 square feet, but no further large store is planned and no decisions have yet been taken on expansion for this format.