Tesco's boss is confident that the business will continue to grow

Pre-tax profits for the 24 weeks to 13 August rose to �908m ($1.6bn), beating economist forecasts of �886m.

Sales at Britain's biggest grocer rose by 14.1% to �18.8bn, with UK same-store sales up 8.2%.

"We remain confident that we will make further progress in the second half," said chief executive Terry Leahy.

Mr Leahy told the BBC that Tesco had no intention of bidding for US group Albertsons, despite recent press speculation.

"We've no interest in Albertsons as a company," he told the Today programme.

"We've been researching the United States for a long time. I think one of my first jobs when I first joined Tesco in 1983 was to go and research the United States and we're still doing it."

Expanding empire

Tesco's share of the grocery market is now estimated to be 30.5%, up from 28.1% a year ago, according to research group TNS.

The accumulating effects of rising oil-related costs, both on consumer confidence and on our business, are a cause for concern Terry Leahy, chief executive See Tesco's share price

Though sales outside of the UK - particularly in central and eastern Europe and Asia - now account for a growing proportion of group sales, about 80% of revenue is still generated at home.

Tesco has generally managed to avoid the impact of the slowdown in UK consumer spending that is hurting many High Street stores, although rocketing oil prices remain a worry.

The company warned that oil-related costs could be as much as �60m above budget this year.

"The accumulating effects of rising oil-related costs, both on consumer confidence and on our business, are a cause for concern," Mr Leahy said.

Branching out

Meanwhile, Tesco is continuing to reap the benefits of branching out from its traditional food and grocery ranges.

Tesco trolleys are loaded with more than just food nowadays

By adding a host of non-food ranges like clothing, home entertainment, mobile phones and even contact lenses it has clawed away market share from other High Street retailers, including HMV and Boots.

Home entertainment sales grew by 17% in the first half, with consumer electronics enjoying a 20% increase. Sales of its health and beauty products rose by 11%.

At the start of the second quarter, UK like-for-like sales were up 7.6%, or 6.6% excluding petrol sales.

Critics gather

Tesco's domination in the UK marketplace has drawn criticism from small business advocates, environmental groups, trade unions and supermarket rivals.

Friends of the Earth has called on the UK Competition Commission to "urgently investigate" what it described as Tesco's "monopoly position".

UK SUPERMARKET MARKET SHARE Tesco - 30.5% Asda - 16.7% Sainsbury's - 15.7% Morrisons & Safeway - 11.3% Somerfield - 5.9% Waitrose 3.7% Iceland - 1.8% Source: TNS

It claims Tesco's practices have put many UK farmers out of business and also created problems for overseas companies who supply Tesco.

Small businesses are also concerned.

The Forum of Private Business (FPB) - which represents 25,000 small firms - said it was deeply worried about Tesco's "relentless profit making", claiming that the supermarket's success frequently comes at the expense of small firms, particularly its suppliers.