Tesco Ireland is likely to post a like for like 1.0% growth in sales next year, however this will be influenced by a 10.3% shift in the Euro-Sterling exchange rate, according to figures from Shore Capital.
In a report, Tesco: Much done, more to do, Shore Capital states that following like for like sales decline of 6.4% in FY2015 and 1.9% in FY2016, the Irish arm of the UK grocer will return to positive growth in each of the next four years, with 1.0% growth in FY2017, 1.0% growth in FY2017, 2.0% growth in FY2019 and 2.0% growth in FY2020.
It anticipates that by FY2020, Tesco’s annual sales figures in Ireland should be around the €2.2 billion mark, up from the €1.82 billion it reported last year.
“Tesco has appointed a seasoned executive in Ireland through Andrew Yaxley,” said the report. “We see him seeing through a strategy similar to the UK, focused upon basic store standards, the value proposition and range development, which in the RoI must take into account a strong connection to locally produced product.”
However, the report added that “there has been industrial unrest in Ireland in CY2016, which may negatively impact short-term sales.”
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