Boss Dave Lewis has been credited with the chain's return to the top after a massive shake up of customer services, food ranges and strong sales.
See also: Tesco getting rid of 5p carrier bags
And in a supermarket sweep, it was also voted Britain's Favourite Supermarket by shoppers in The Grocer Gold awards.
Tesco scoops shoppers' award as favourite supermarket of the year
Editor Adam Leyland said: "It has been convincingly re-engineered from the ground up, its store standards have vastly improved despite slashing costs, and it has made incredible strides to restore its battered reputation.
"To get Tesco firing again has taken a Herculean effort from everyone involved at the supermarket, from the boardroom to the shop floor."
The glittering ceremony at London's Guildhall on Tuesday night saw frozen food chain Iceland scoop Online Supermarket of the Year for the first time.
Boss and founder Malcolm Walker said the budget store's success was down to "great-tasting quality food" at "outstanding value for money" prices.
Greggs best known for its sausage rolls and steak bakes has started selling lower fat pasties in a make-over that's paying off
Asda won Grocer 33 Price for the best value chain for a record breaking 20th year on the trot and Sainsbury's picked up the Best Customer Service gong.
Morrisons took the Best Own label award, Budgens was named Convenience Store of the Year while Greggs took the new Food to Go Retailer of the Year.