Supermarkets are trading strongly as recent results posted by the major retailers reveal. Market leader Tesco recorded a 14.1 per cent rise in profits in the full financial year to February 23 to a best ever £1.2billion. Sales rose to £25.7bn, a 12.7 per cent climb.

The store is not resting on its laurels however, with talk about further expansion plans and the creation of 21,000 jobs globally over the coming year.

Meanwhile, the UK's number two supermarket Sainsbury's announced it had finished 2001 in a position of strength with fourth quarter sales up nearly seven per cent on the previous year. The figure does not include petrol retail.

The City was also cheered by signs of recovery at recent market struggler Marks & Spencer. Fourth quarter sales also rose and food sales, which account for almost half of the store's total sales, experienced a 4.5 per cent climb on the same period last year. Year- end sales at March 30 were also up by four per cent.

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