Tesco has announced an 8.5 per cent increase in group sales to £62.5bn delivering an underlying pre-tax profit of £3,395m, up 10.1 per cent.

With 85 stores employing more than 18,000 staff across Wales, Tesco today also confirmed that it remains on target to deliver 1,000 new jobs for local communities as it continues to invest in growth.

Chief Executive Terry Leahy said: “By remaining focused on our strategy Tesco has weathered the economic storm well. "Across the Group, we have successfully adapted our cost structures and ranges to help customers save money when they’ve needed to and treat themselves when they’ve wanted to. "Our positions in international markets and non-food meant we faced stronger headwinds when the downturn came but it will be these parts of our business which will grow fastest as the recovery strengthens.

"Each part of our business – UK, International, Non-food, Services – is stronger now than it was before the recession. With leaner operations, improved market shares, strategic acquisitions performing well and a strong organic development programme, we’re well placed for sustained profitable growth. And with the balance sheet strengthening, we have strong foundations in place for improving returns on capital going forward.“