Tesco reports strong sales as consumer confidence continues to grow.

With Christmas approaching, Tesco revealed like-for-like UK sales have risen 1.5% in the three months to 27 November.

Chief executive, Terry Leahy said of the increase: “It’s not party time, but people are recovering in confidence.”

Total sales across the group’s 5,000 stores rose by 8.8 per cent. Tesco’s Finest line also saw a boost as sales increased by more than 10 per cent compared with two years ago in the run up to Christmas.

With 30.7% of the market share, Tesco finance director Laurie McIlwee said: “The build up to Christmas is going well. We have given Finest an extra push and we are seeing consumers trading up. Non-food is also going well which is a good sign of consumers’ confidence.”

Boots sees improved profits thanks to sales of anti-ageing creams.

The company said half-year figures for its health and beauty division has seen profits rise by 2% thanks to the Protect and Perfect creams.

Despite revenue for the company as a whole rising by 6% to £8.9bn, Boots has announced its plans to cut 900 non-store UK jobs in order to cut costs.

With plans to save £56m per year by 2013-14, Boots has announced the majority of cuts will take place in Nottingham, the headquarters of Alliance Boots in the United Kingdom.

Chief executive, Alex Gourlay said the move would allow the company to “have a stronger and more agile support infrastructure fit for the long-term future.”

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Retail sales in the UK see first drop since January this year.

While John Lewis may have seen some positive figures as their profits rise by 28%, threats to the retail market are still looming. Chariman of the John Lewis Partnership, Charlie Mayfield warned there may be trouble ahead in the retail sector as public spending cuts and tax rises are still to come.

This comes just as the retail sector as a whole sees a surprise fall in sales after six months of growth within high street growth. Despite the difficult economic climate, UK shoppers have been surprisingly resilient in terms of high street spending until now.

Top economist at HIS Global Insight, Howard Archer, told Sky News: “The unexpected 0.5% fall in retail sales in August is a nasty shock and deals a significant blow to growth hopes.” It is thought that a combination of job loss worries and the intended VAT hike in January are causing shoppers to be more conscious of their spending.

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