Tesco posted an increase in first-quarter revenues today (14 June), with the company seeing an improvement in UK like-for-like sales – although they still fell.

The UK’s largest grocer said that group sales were up 6.7%, excluding petrol, for the quarter ended 28 May.

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In the UK, sales excluding fuel were up 4.9%% for the quarter. However, like-for-like sales, excluding petrol, and VAT, were down 0.1%. Tesco said the result was an improvement on the 0.7% decline reported in the fourth quarter of its 2010/11 financial year.

The retailer insisted its UK business “continues to grow faster than the industry as a whole” despite the “cautious consumer environment”. It said that UK growth was “helped” by an “excellent performance” in new stores, despite being constrained by weak demand.

Over the quarter, the retailer posted an almost 10% increase in sales of its Finest private-label, which it attributed to consumers seeking “quality alternatives to eating out”.

Internationally, the company posted “strong growth” despite the economic performance in some markets such as Ireland being a “limiting factor”.

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Tesco’s sales in Asia rose 8.6%, which it said was supported by new store openings across the region. Like-for-like sales were up 3.2%.

In Europe, sales excluding petrol were up 9.5%, with a particularly strong performance in the Czech Republic and Slovakia.

In its troubled US Fresh & Easy business, Tesco reported a 21.9% increase in sales. Like-for-like sales were up 11.1%. The company said growth was driven by both increased customer numbers and higher average spend. Its recently opened stores in northern California have “started strongly” with weekly sales per store of US$150,000 in their first quarter.

“Uncertainties remain but with early, encouraging signs of better performance emerging in both the UK and the US, I am confident that this start will provide the platform for another year of growth and rising return on capital employed for Tesco,” said chief executive Philip Clarke.

However, shares in the retailer were down 0.79% today at 09:45 BST to 404p.