Shares in Tesco opened nearly 2% higher following the sales update.
Chief executive Philip Clarke said: "Our customers are seeing the evidence of the changes we're making and they're telling us they like what they see."
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85% of products surveyed by the charity Action on Sugar were found to have more of the sweet stuff than Haribo.
New Psychoactive Substances Bill creates a blanket ban on the sale of legal highs, with up to 7 years in jail for selling them.
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