Tesco has raised its annual profit forecast while joining Marks and Spencer (M&S) in reporting strong Christmas sales.
Tesco, the UK’s largest retailer, said comparable sales growth over six weeks to 6 January was 6.8% higher compared to the same period last year.
The figure rose to 7.5% over the 19 weeks also covering its third quarter.
M&S reported a better-than-expected 8.1% rise in like-for-like sales over the 13 weeks to 30 December.
It claimed a market-leading performance in food growth and a strong performance in womenswear.
The companies are the latest to update on their performances over the festive period, a Christmas that has already thrown up a mixed picture.
In general terms, figures from the British Retail Consortium have suggested that sales growth has lagged the rate of inflation, with shoppers shying away from big purchases such as for furniture and high-end electronics.
While Next did not disappoint the market with its figures, another usual top performer issued a profit warning a week ago.
JD Sports said “caution” among cash-strapped consumers contributed to a weaker than expected sales result.
People appear to have been more interested in eating well, with Sainsbury’s reporting strong grocery growth but a downturn in non-food sales.
Greggs revealed strong demand.
Industry data released last week suggested that Lidl and M&S had enjoyed the best food growth over the Christmas period.
Kantar Worldpanel said that high levels of promotional activity aided “record” sales for the sector as a whole despite the continuing cost of living crisis, exacerbated by higher interest rates aimed at keeping a lid on inflation.
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