Tesco Ireland has posted a sales decline of 1.2% in the third quarter of the year, according to a trading statement issued this morning (14 January).
The performance follows on from a 3.7% decline in the first half of its financial year, comprising a 2.9% decline in Q2 and a 4.4% decline in Q1 - indicating that the retailer is beginning to turn the corner in its Irish performance.
Tesco Ireland also stated that during the Christmas period, sales were up 2.9%, meaning that for the 19-week period (including Q3 and Christmas), it posted a small sales increase of 0.2%.
"We're pleased with our performance over the last 19 weeks, particularly during Christmas," said Andrew Yaxley, CEO, Tesco Ireland. "Our focus was to give customers a great experience in Tesco with great value products, great brands and a great shopping experience.
"We're pleased that customers responded so positively with LFL sales increasing 0.2% over the 19 weeks ended 9th January and 2.9% at Christmas. Highlights over the period include; the positive customer response to our finest range, an uplift in online grocery orders and our performance in fresh foods."
Yaxley added that while "the market remains highly competitive, we continue to focus on the key elements of our customer proposition including our significant investment in Staying Down prices."
Last year, Tesco announced that its Irish retailing and associated activities would be included in a new UK & ROI segment; previously its Irish division formed part of a Europe segment.
Commenting, Barclays European Food Retail Equity Research said, “Ireland has to some extent been a lead indicator for UK performance (and is a market with similar discounter challenges) – so the strong recovery (+2.9% LFL at Christmas) carries some weight.”
© 2016 - Checkout Magazine by Stephen Wynne-Jones
