A DOUBLE Clubcard promotion and increased toy sales in the run-up to Christmas boosted sales at supermarket giant Tesco.

In a trading update, the sector leader, headed by Liverpool-born Sir Terry Leahy, reported signs of improving consumer confidence as like-for-like sales, excluding petrol, grew by 2.8% in the 13 weeks to November 28.

Total sales were up by 8.8%.

Tesco said it was helped by its Clubcard points promotion, as well as “particularly strong growth” in toys and entertainment goods in the build-up to the festive season.

Chief executive Sir Terry said: “We are seeing improving customer confidence and encouraging trends in both the UK and our international businesses, although recessionary conditions still exist in a number of markets.”

Tesco has slashed prices on its luxury Finest range and launched a TV advertising campaign to tempt in more shoppers and take the battle to Waitrose and Marks & Spencer.

The company has also fought with its rivals to fill the gap in the toy market left by the demise of retailers such as Woolworths late last year, while its Tesco Direct website also put in a “strong performance”. The figures come after the supermarket saw its first market share growth in almost two years in the 12 weeks to November 1, according to the latest TNS Worldpanel figures.

Last year, soaring food inflation dented the business as customers defected to discount rivals Aldi and Lidl.