Group sales were up 12.2 per cent overall reflecting the continued expansion of Tesco’s overseas business where sales grew 34 per cent. In the UK, sales were up 9.2 per cent in the period.While Tesco’s rivals have yet to report their figures for the same period, the performance outshines the most recent available data from its major competitors. J Sainsbury saw like-for-like sales rise 5.3 per cent in the second quarter, while Safeway notched up a 5.3 per cent climb in the same period.However, Tesco’s impressive performance nevertheless marked a slowdown on previous quarters, when like-for-like sales grew by 6.7 per cent and 7.4 per cent respectively.Tom Gadsby, a retail analyst at stockbrokers Williams de Broe, said the figures highlighted that Tesco had greater room to manoeuvre than its peers, in particular J Sainsbury, which had suffered from worse price deflation. “These numbers are very good, although the shares dipped because people are no longer looking at defensive stocks Sales are up against a very strong period last year. And they are especially strong for what is a mature business. Tesco clearly has a strong proposition [for customers].”The company, which this year made £1bn of profits for the first time, put its domestic success down to expansion of its non-food product range. Tesco’s push into the non-food arena suffered a setback last week when the European Commission ruled that it had broken the law in selling Levi’s jeans and other premium-branded goods at sharp discounts to the manufacturers’ recommended retail prices.Andrew Fowler, an analyst at Merrill Lynch, said: “Unlike J Sainsbury and Safeway, Tesco is translating remarkable sales growth into remarkable profit growth.

However, with industry sales now slowing, the investment tide has now turned against this sector.”Tesco shares closed down 4.5p at 240p, still well off their year-high of 284.75p.. Airtours, Britain’s second-biggest holiday company, is to change its name to MyTravel Group as part of a major rebranding exercise. The company will use the new name on its fleet of 51 aircraft as well as its 1,000-strong chain of travel agencies, with the Going Places name being gradually phased out. However, the company will retain the Airtours name for its main holiday brochure.
The makeover has been timed to coincide with the launch of MyTravel , the Airtours e-commerce operation. The company said it wanted to bring all its distribution businesses under one name However, it said the costs of the exercise would be minimal. The Going Places travel agencies will have to fund the changes from within their existing refurbishment budgets, with the changes due to be finished by next Christmas.

Tim Byrne, the Airtours chief executive, said the airline rebranding would be completed by next winter too and would consist merely of “sticking transfers” on the side of the planes.The change of the company name is a poignant moment for David Crossland, the Airtours chairman, who founded the company in 1972. The name came from one of the first businesses he acquired, a Lancashire-based family operation run by Alf and Ivy Roberts. They had used their initials for the name AIR Tours which Mr Crossland took on and has used ever since. Mr Byrne denied the changes would cause disruption as well as confusion in holidaymakers’ minds. However, Superbrands, a branding consultancy, said the move could backfire in the short term. It said that following 11 September, the strength of traditional brands would be essential. “Established, well-known and well-respected brands will be the likely victors in the battle for consumers’ trusts and share of the wallet during the next six months,” it said.The change is the latest in a string of rebranding exercises in the travel industry.