Tesco said its annual sales increase of 14.2 % at its UK stores was one of its strongest in recent times.

The retailer said it now has a total of 83 Extra stores and has 277 Tesco Express stores to push its share of the convenience market up to 5.9%.

Tesco said it was now the number one retailer in the baby goods market “selling more than both Boots and Mothercare combined”.

Sales of DVDs at the chain has increased 60%, while Cherokee and Florence & Fred were the “fastest growing clothing offer in the UK”, Tesco said.

Tesco.com hit sales of £577m, up 67% in the last three years. Profit more than doubled to £28m.

Tesco said it was building its new telecoms business by repeating its approach to banking, to deliver convenience and value to customers “seeking lower phone bills from a brand they can trust”.

The group’s financial services delivered a profit of £160m in the year, with Tesco’s share £80m.