Tesco increased like-for-like sales by 2.7% year-on-year at its core UK and Ireland supermarket business in the peak Christmas trading period despite the impact of supply chain issues.

Sales in central Europe were also strong, rising by 8.1%.

In a trading update, the retailer said it achieved its highest market share in four years with growth in both stores and online.

It also put in a strong large store and convenience performance and said that online sales were significantly ahead of pre-Covid levels with around 1.2 million orders per week.

The Christmas performance meant the retailer’s third quarter sales rose by 2.4% with growth of 2.3% in the UK and Ireland.

Tesco now expects full year retail operating profit will be slightly above the top-end of its previous £2.5 billion to £2.6 billion guidance range.