Tesco’s half-year profits have jumped 10% as the supermarket giant raised its forecast for the year.

In the half year to 24 August, sales edged up 4% to £31.5bn as volumes also increased, particularly across fresh food and its Tesco Finest premium range, which saw a rise of nearly 15%.

Tesco chief executive Ken Murphy said the grocer was in “good shape” as it is now expects to deliver £2.9bn in retail adjusted operating profit, a rise on its previous expectations of “at least £2.8bn”.

It comes as the supermarket continued to experience net switching gains for 19 consecutive four-week periods in the UK.

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Tesco said this came as a result of investments in additional store hours, the equivalent of more than 2,000 extra colleague roles year on year, and investments in product quality, innovation and sustainability, having launched 282 new products and improved 580.

Meanwhile, its Clubcard loyalty scheme saw sales penetration rise in all markets year on year, up 82% in the UK.

Murphy said: “The combination of price, quality and innovation means we are as competitive as we have ever been, and we have been the cheapest full-line grocer for nearly two years.”

Tesco’s market share also rose 62 basis points to 27.8% in the 12 weeks to 1 September year-on-year, its highest level since January 2022, according to Kantar.

Looking ahead, Tesco is on track to open a new chilled distribution centre in Aylesford in the summer of 2025, which will use robotic automation to streamline operations, improve efficiency and support its commitment to deliver what the retailer describes as a “seamless” shopping experience for customers.

Murphy added: “We’ve been working really hard to offer our customers the best possible value, quality, and service and they are shopping more at Tesco as a result. We have lowered prices on thousands of lines, launched or improved over 860 products in partnership with our suppliers and growers, and our customer satisfaction scores continue to improve across a broad range of measures.

“We are in good shape, with volume growth delivering strong financial performance. This builds on our track record of delivery for all our stakeholders. Our strong momentum allows us to continue to focus on value, quality, innovation, and the broader customer experience, whilst investing in growth opportunities in a disciplined, returns-focused way.”