Tesco has announced a 0.6% increase in like-for-like first half UK sales as its turnaround continues.
The grocery multiple has now overseen its seventh consecutive quarter of both volume and transaction growth, with UK volumes up 2.1%.
Pre-tax profits fell 28% from £99m to £71m, mainly on the back of one-off costs.
Since September 2014 prices have dropped by 6% on a typical customer basket, while the number of products on multibuy promotions have reduced by 27% year on year, it said.
Chief executive Dave Lewis said: “We have made further strong progress in the first half, with positive like-for-like sales growth across all parts of the group as we re-invest in our customer offer whilst rebuilding profitability in a sustainable way.
“Whilst the market is uncertain, we have made significant progress against the priorities we set out two years ago, stabilising the business and positioning us well for the future.
“Today, we are sharing the plans we have in place to become even more competitive for our customers, even simpler for colleagues and an even better partner for our suppliers, whilst creating long-term, sustainable value for our shareholders.”