Tesco Ireland has reported strong results for the first quarter, as it experienced growth in all channels.
The retailer continued its market share growth, which went up by 59 basis points in the quarter, according to market research firm Kantar.
Tesco Ireland also experienced 18 consecutive periods of positive switching gains.
There was growth in all channels, with food sales going up by 5.1%.
Fresh volumes within food sales were particularly strong, supported by investment in the proposition.
Across the company, core retail sales – excluding tobacco – went up by 1.0%.
An overall sales decline of 1.3% reflects a continued decline in the tobacco market and weakness in the fast-food market serviced by Best Food Logistics.
On Friday, shares in Tesco went up by 2.7%, extending year-on-year gains to 17.3%, after chief executive Ken Murphy reported a “strong” first quarter for the UK giant.
‘Well Positioned’
On the overall results, Murphy said, “We’ve continued to build momentum in the business, with strong volume growth across the UK, Republic of Ireland and Central Europe supported by easing inflation.
“Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often, and with more in their baskets.”
On the upcoming quarter, Murphy said, “We are looking forward to helping our customers celebrate a great summer of sport.
“We recently launched more than 100 new and exciting own-brand products, including our Finest Dine In summer menu, based on classic pub dishes, and improved our picnic & deli, barbecue and sweet-treat ranges.
“Tesco Finest growth was particularly strong in the quarter, as customer perception of the quality and of our products continues to improve.”
Murphy concluded, “Following another strong quarter, we’re pleased to reiterate our guidance for the full year, with sales trends in line with our expectations and the business well positioned for the months ahead.”
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