Tesco’s Irish stores record ‘strong sales’ during festive season

Tesco said its Irish stores had recorded ‘strong sales’ throughout the key Christmas period, with sales here up 6.4pc over the festive season.

n a trading statement, the grocer also reported that sales for the 19 weeks ended January 7 stood at £1.04bn (€1.17bn) in Ireland.

This period included the third quarter of the grocer’s financial year, as well as Christmas trading.

This marked an increase of 8.6pc on a constant currency basis compared to the same period last year.

Tesco said this performance was particular notable “given exceptional Covid-related growth in previous two years.”

Sales over this period were also 16.3pc higher than pre-pandemic levels in 2019.

Tesco also noted a rise in online shopping in the Irish market, with digital sales up 9.6pc in the 19-week period.

Irish customers also embraced the grocer’s loyalty programme in the final months of 2022.

Clubcard sales penetration rose to 75pc, with Tesco offering focused Clubcard prices for certain goods across its stores.

Following the acquisition of Galway grocery retailer Joyce’s in November 2021, nine Joyce’s stores were converted and re-opened as Tesco stores in time for Christmas trading in 2022.

Tesco acquired 10 outlets but was ordered to sell Joyce’s Oranmore store by the Competition and Consumer Protection Commission last June.

Sales in the UK, where Tesco holds the largest market share, rose to £15.5bn (€17.5bn) in the 19 week period to January 7, up 5.1pc on a constant currency basis.

Overall, group sales rose by 6.6.pc to £21.8bn (€24.6bn).

“We’ve delivered a strong market share performance in the UK and the Republic of Ireland,” Cork-born group chief executive Ken Murphy said.

“We go into the new calendar year with good momentum and I am confident we can continue to maintain our competitiveness and deliver a strong performance relative to the market despite the challenging conditions ahead.”

Despite the strong Christmas performance, the retailer reconfirmed its profit guidance for its financial year.  Tesco expects its adjusted operating profit to be between £2.4bn (€2.7bn) and £2.5bn (€2.8bn).

In October, the grocer said it expects profit to be towards the lower end of guidance as it continues to battle higher food costs as a result of inflation, as well as competition from discounters. 

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