In its preliminary results for the year ending Feb 23, Tesco said the 11.8% rise in sales to £51.8 billion was driven mostly by strong sales internationally (50%) and online sales (30%).
Chief executive Terry Leahy said: “The breadth of the group and the strength of our business model have enabled Tesco to deliver another year of double-digit sales, profit and earnings per share growth – in challenging market conditions.
"We begin the new financial year confidently – with a good start in the UK, excellent progress in our established international markets and promising early performance from our investments in future growth, particularly in the United States, China and Turkey.”
The British Retail Consortium's retail sales monitor from March 2007 to March 2008 saw UK retail sales fall 1.6%.
The BRC said the decline was the worst since July 2005 when cold wet weather hit sales, but that this year's early Easter, unseasonal weather and school holidays during different weeks made comparisons difficult.