Tesco's Irish Business Down 5.5% In FY 2013/14
Published on Apr 16 2014 9:07 AM in Retail
Like-for-like sales in Tesco's Irish business are down 5.5% on the previous year (excluding petrol), according to the retailer's full-year results for the year to end 22 February 2014, issued this morning.
Four successive quarters of decline (Q1: -3.0%, Q2: -4.4%, Q3: -8.1% and Q4: -6.4%) meant that the Irish business was one of the weaker performing regions in Tesco's international estate during the period.
In a statement the retailer said that vouchering by its rivals impacted on its performance in Ireland. "We have also worked hard to emphasise the breadth of our offer and points of differentiation despite intense vouchering activity in the market," it said.
It also noted, however, that Price Promise, launched in October, "helped improve trust in prices with customer perceptions reaching a four-year high."
Overall, Tesco group sales were down 0.2% at constant exchange rates (up 0.3% at actual exchange rates), to £70.9 billion. Group trading profit, however, was down 6.7% (-6.0% at actual exchange rates), at £3.3 billion.
“We are transforming Tesco through a relentless focus on providing the most compelling offer for our customers," said Philip Clarke, Tesco Chief Executive. "Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before. We are determined to lead the industry in this period of change."