Tesco Private-Label Foods Fueled Sales Gain Last Quarter (3)

Tesco Plc’s sales increased more than expected as the supermarket chain sold more premium and own-brand products.

Like-for-like UK sales rose 5.1% in the quarter ending May 24, Britain’s largest grocer said Thursday. Analysts had anticipated a 3.9% gain.

Tesco has been gaining ground on rivals in recent months as moves to price-match against discount retailers such as Aldi bear fruit. The stock climbed as much as 2.2% in early London trading, bringing this year’s increase to 6%.

The grocer introduced more than 350 new own-brand products in the quarter, including a truffle pasta as part of a premium ...