Tesco, Britain's biggest supermarket group, said it was 'well positioned' for the balance of the year, as it reported a 4.6% rise in underlying quarterly sales in its home market and reiterated its guidance.
CEO Ken Murphy said Tesco's market share was growing more than at any other time in the past two years.
Its market share rose 50 basis points to 27.6% in the 12 weeks to 12 May year on year, according to market researcher Kantar.
"Customers (are) switching to us from other retailers, shopping with us more often and with more in their baskets," said Murphy, adding that sales trends were in line with the group's expectations.
In contrast to Tesco's update, other recent UK retail data has been subdued, with wet weather and ongoing cost-of-living pressures denting consumer spending in May, particularly for larger ticket items such as furniture.
One survey published June 4 showed the weakest spending growth in more than three years - an outcome that did not chime with Prime Minister Rishi Sunak's message to voters ahead of a 4 July national election that the economy is rebounding.
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Tesco is benefiting from its strategy of matching the prices of discounter Aldi on key items, and the popularity of its Clubcard loyalty scheme, which provides lower prices for members.
These programmes are being financed by taking costs out of the business, with a further £500 million (€594.5 million) of savings targeted for 2024/25.
Tesco said its total sales, excluding VAT sales tax and fuel, over the 13 weeks to 25 May, its fiscal first quarter, were £15.3 billion (€18.2 billion) – up 3.4% on a like-for-like basis.
Tesco kept its forecast for retail adjusted operating profit, its preferred profit measure, of "at least" £2.8 billion (€3.33 billion) for its 2024/25 year, versus from £2.76 billion (€3.28 billion) in 2023/24.
