Tesco profit tops forecasts

It is responding with plans to enter the United States next year and Tesco Direct, a new home delivery service for more than 8,000 non food items, which it said had attracted more than 1 million hits on its Web site in the three weeks since launch.

With regard to the rollout of its "Fresh & Easy" stores in the western United States next year, Leahy denied speculation Tesco could be considering straying from its original aim to set up convenience stores and would now take on "big box" retailers.

"We haven't altered from our brief which is we will be addressing the market for convenience," he said.

Tesco proposed an interim dividend of 2.81 pence a share, up 11.1 percent on the year.

(Additional reporting by Anshuman Daga and Mark Potter)