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Dublin: 11 °C Tuesday 21 May, 2013

Tesco sees first Irish sales boost for two years

The announcement is a turnaround after months of declining sales figures.

Image: Tim Ireland/PA Wire/Press Association Images

TESCO HAS REPORTED its first increase in Irish sales since 2010.

Like-for-like sales at the supermarket giant – which discount the impact of new stores opening – grew by 0.4 per cent in the first three months of 2012.

They had fallen by 0.7 per cent in the last three months of 2011, and for several quarters previously. In a statement the retailer described the figures as an “improved performance”.

However, the retailer reported a fall in UK sales, which decreased by 1.1 per cent. The drop was 1.5 per cent when VAT and petrol were excluded.

When global markets were factored in Tesco’s sales increased overall by 2.2 per cent, with nine per cent growth in Asia and a 19.7 per cent boost in the US.

Tesco’s chief executive Philip Clarke said the company had “performed robustly” despite what he described as “subdued consumer confidence.” He added:

Against the backdrop of continuing uncertainty in the Eurozone, it is pleasing to see that our businesses have largely sustained their performance.

The company has hired 4,300 new staff and revamped 100 stores in the UK since the beginning of the year.

Read: Grocery sales fall by 0.2 per cent>

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Comments (26 Comments)

  • I’ve noticed that Tesco has gotten more expensive in the last few years, particularly over here in Britain. I don’t feel very comfortable with their methods of squeezing the suppliers, though it would be a mistake to believe that Tesco are the only crowd that are doing it…our own Irish supermarkets are just as bad. I used to work in a large food factory while I was on holidays from college and the company’s most valued customer was Tesco…whatever they said, goes. Whenever their ‘suits’ came over from England, you could feel the atmosphere in the factory, they were like the Mafia or something!! I don’t like to be a snob but I tend to shop local whenever I can, London is full of cheap fruit and veg shops so it might be a bit easier than at home.

    On the flipside, food shopping in Ireland has decreased dramatically since I’ve moved away…I was in Dunnes two weeks ago and couldn’t believe the amount of food I got there for a €20 with change left over.

    Reply
  • We need Asda to shake things up a little.

    We also need an end to Price Matching, how about a bit of undercutting and actual competition?

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    • The last thing anywhere needs is wall mart coming in

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    • Believe me, mate…you don’t want Asda to come in…

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    • I do want Asda to come, hence my conspicuous use of the phrase “We need Asda to shake things up a little.”

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    • Incredibly short sighted, if you think Tesco, Aldi and Lidl destroy small indigenous business then just wait and see what wall mart do if their uk brand asda came in! Also from my experience in the uk are horrible shops with poor own brand produce meaning I’d still avoid despite the cheap branded goods.

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    • If you’d avoid it, fair enough. I wouldn’t.

      I’d welcome competitive pricing, a decent range of products and a cheaper shopping experience.

      I’m sure I’m not alone in not wanting to be ripped off by the supermarkets. Give me the option to choose.

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    • Well, in reference to own branded products, that area is seeing a big change from the UK supermarkets perspective. Tesco have recently changed their branding of their value range, think they call it Tesco Everyday now or something like that. This was in response to Sainsbury’s, who have a more upbeat approach to their value brand, more attractive packaging (Tesco Value had a fairly iconic design, but for all the wrong reasons).

      As cheap as Asda is, their own brand stuff is very mundane. Yes, you’re right…they’d certainly shake up the market but I honestly believe Musgraves and Dunnes do offer good value in comparison to the likes of Sainsburys (feckin’ rip off!!) Budgens sell SuperValu own brand stuff in their shops over here and my friends swear by the quality of their food, they didn’t even realise SuperValu was a shop in Ireland.

      Asda go as far as having an in-store radio station…not sure would I like to see things like that happen in Ireland.

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    • Damocles 11/06/12 #

      Oh I see, you don’t live or shop in Ireland but would still rather I didn’t have ready access to Asda.

      Gee, thanks!

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    • No need for sarcasm, just expressing my opinion. Thing is I actually do return to Ireland quite often each month for work so I see the differences more so than most folk. I just think they’ll make the situation worse in my opinion, I have seen Asda destroy regional towns in England with their ‘out of town’ model, more so than any other large supermarket and now they want to change store dimensions to make these shops larger?! Policy doesn’t make sense to me, they complain that the British high street is dying yet they go ahead and do the one thing that will kill it off even further.

      But I suppose at the end of the day, its about getting value for money. For me, shopping around is the best bet…certainly works for me whether I’m in Ireland or England. When I lived in Cork, we used to have a lovely local greengrocer who had very low prices for fruit and veg, and even used to give us free stuff. My mam goes to the local mart and picks up really cheap fruit and veg aswell. I know not everyone has time or money to invest going to a different shop for each thing but thats how I do it and it serves me well.

      Reply
    • Damocles 11/06/12 #

      They’ve been going on about this death of the small shop thing in the UK for well over 20 years.

      And yet you’re still able to use them.

      So it can’t be all bad.

      Big supermarkets give people a choice, people can use them, or not. They can shop locally, or not.

      If little shops do go to the wall it’s because people care more about the money in their pocket. That is the way of things. Live with it.

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  • did they release figures just on the Irish stores, because they normally include the Irish ones as part of the financial figures for the UK. it would be interesting to see how much food they imported rather than use Irish produce.

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    • John! I wouldn’t imagine many people care where Tescos source their food! It’s all about value for money these days!

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    • The vast majority of Tesco own brand products are Irish – check for yourself next time. All their meat has the bord bia logo to indicate this and all their own brand milk has the national dairy council logo! The same can’t be said for other stores. Superquinn who go on about supporting Irish farmers don’t actually do that if you look at their own brand milk – no national dairy council logo – the same goes for Dunnes. Tesco are by far the cheapest all-round store out there that offers Irish products at competitive prices.

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  • Supermarket chains behave like banks and are incredibly predatory. Each of them including Asda, Aldi and Lidl included are not there to do us favours its purely a competition about market-share and how much of your weekly disposable income they can lift from you. If they can rub out the corner-shop, rub out the idea of choice to increase efficiencies and standardize they will. Many of us won’t bother if they do, it’s convenient, so sometimes the ethics of what they do passes us by – just like we did with the banks. Oh and look at the bother we are in now!

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  • Tesco is racket. Bought a bottle of vinegar in my local tesco a few weeks ago for 35c. Same bottle is now €1.95!! They increase prices and then lower them and promote them as price reductions. Plus they let go alot of staff resulting in longer queues at checkouts. More profit and less value.

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  • This is the same Tesco who lied on liveline to the entire Irish nation stating when their % profits made in Ireland, of the €2.03bn for England, Ireland, Scotland and Wales, were commensurate with the numeric demographics across the nations. They weren’t, it came out shortly after the Irish portion of that profit was €1.03bn. This is during a recession and they still were screwing the Irish people. Screw them.

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  • Sales are sales and profit is profit …. When they sell slabs of beer for €24 ie a euro a can of course people are going to swarm the stores for cheap booze …. These stores sell a lot of produce at a loss in the hope of people staying or returning to buy complete shops not just impulse buying ……..

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  • A lot of Irish products have gone from Tescos shelves never to return, most stock being brought in from u.k. direct if you check the origin of most products on sale you will find that they are mainly uk based and produced, support irish and go to dunnes,irish based lidl and aldi prices compared to mainland eu outlets are far more expensive, just showing that the cartel system is still alive and well in ireland

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  • thanks Dave, I was hopefully going to get similar feedback on the import question I raised. to follow on from your comment if we can get the public to look at the country of the veg. big signs say Irish, small sticker says other.

    Reply
  • Good for them, they’ve really shaken up the competition and led to better value everywhere for the consumer.
    We were being ripped off for years

    Reply

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