Tesco, Britain's biggest retailer, today posted a small rise in quarterly underlying sales in its home market after 18 months of decline.
This indicated that changes introduced after a shock January profit warning are starting to make an impact.
The world's third-largest stores group makes over 60% of its trading profit in Britain.
It said sales at UK stores open over a year, excluding fuel and VAT sales tax, were up 0.1% in the 13 weeks to August 25, its fiscal second quarter.
That compares with analysts average forecast of flat sales and represents a significant improvement on a first-quarter decline of 1.5%.
First half group trading profit fell 10.5% to £1.6 billion, while UK trading profit fell 12.4% to £1.1 billion - both in line with analysts' expectations.
"We continue to act decisively to tackle challenges and seize opportunities across the group," said chief executive Philip Clarke.
Tesco said in its results statement today that its Irish operations was one of the markets first and most profoundly affected by the financial crisis and subsequent recession.
''Our business there performed well in the first half this year, delivering two successive quarters of positive like-for-like sales growth, albeit profit performance remained subdued,'' the company said.
In April, Tesco unveiled a plan to invest £1 billion sterling to stem a steady decline in market share to Wal-Mart Stores' Asda, J Sainsbury and Morrisons, as well as discounters Aldi and Lidl. That investment was largely responsible for Tesco's first fall in profits in nearly 20 years.
The group has used the money to recruit 8,000 additional permanent staff to give customers better service, devoted more store space to food, given stores a warmer look and feel, revamped food ranges and invested more in lower prices, money-off vouchers and marketing, making better use of customer information gleaned from its Clubcard loyalty scheme.
Tesco has also increased spending on internet and smartphone services, expanded its online range and rolled out its Click & Collect service of buying online for pick up in store.
"I am encouraged by our customers' initial responses to the changes we have made - but there is much more to be done," Clarke said.
Tesco's problems are not confined to Britain. Questions remain over its long-term commitment to US chain Fresh & Easy where trading losses narrowed by just £1m to £72m.
Also in South Korea, Tesco's biggest overseas market, legislation allowing local governments to impose shorter trading hours is hurting sales.
Tesco said it would pay an interim dividend of 4.63 pence.
