By Jonathan Davies

The rate at which Tesco is losing sales is slowing down, according to the supermarket's figures.

UK and overall sales dropped 1.3% in the three months to the end of May, compared with a 3.4% fall overall and 4% decline in UK sales in the same period last year.

It also beat analysts' expectations of 1.6-3% and was an improvement on the previous quarter when sales were down 1.7%.

"We are fixing the fundamentals of shopping to win back customers and relying less on short-term couponing," said chief executive Dave Lewis.

Mr Lewis took over in September and is leading plans to turnaround the business after the UK's biggest retailer reported its worst ever annual figures in April - a loss of £6.4 billion.