Tesco Records 2.8% Growth in Ireland in 2011-2012
18 April 2012
Tesco Ireland has reported growth of 2.8% with sales of €3.07bn in the year to 26 February 2012. Reflecting lower prices and continued market decline, like for like sales fell by 2.4%.
Mr Tony Keohane, Chief Executive said: "We are pleased with the overall position and particularly that we have outperformed the market in very challenging conditions".
Total customer transactions grew to a record 2.6 million (weekly) while online grocery shopping continued to grow strongly with sales up by 21% to €57.1million.
Investment of €127.0m was committed during the year in building eleven new or replacement stores and upgrading a further 47 stores across the country. New superstores were completed at Cabra, Dublin, Rush, Co Dublin and Kildare town, while replacement stores were completed at Balbriggan, Co Dublin, Portlaoise, Co Laois, and Roscrea, Co Tipperary. Five new Express stores were opened in Dublin and Co Kildare. Store upgrades and modernisation were completed in stores across the country.
770 new jobs were created during the year with a further 500 people employed on construction and store upgrading projects. Total employment at Tesco Ireland is now 14,925 people.
An updated report on Tesco’s economic contribution to Ireland was published recently showing that Irish food and drink exports to Tesco businesses internationally exceeded €705million, and that its overall contribution to the Irish economy stood at €2.7billion annually. Its contribution to national GDP is 1.1%.
Commenting on the year’s results, Mr Keohane said: "Despite a continuing stressed domestic economy, Irish consumers are proving resilient and adopting practical responses to the pressures on family incomes. We are seeing customers increasingly opting for fresh products in providing healthier meal options for their families, as well as shopping special offers and buying more own label products. Our outperformance relative to the market reflects the excellent efforts of our staff in Ireland".
"Recent improvements in consumer sentiment are currently being reflected in our shops. Notwithstanding, we will continue to adapt our range and pricing to help customers get by in what are tough economic times. We will particularly be focussing on strengthening our range of fresh produce, and increasing our Irish range in the coming year".
A new Irish Supplier Development programme was recently launched in co-operation with Bord Bia to assist emerging Irish food companies to expand their shelf presence in Tesco stores in Ireland and in export markets.
Note to Editors:
Tesco Ireland employs 14,925 people at stores (137), distribution depots and head office in Ireland, serving the grocery and household needs of 450,000 Irish families every week. Its shops include convenience stores, supermarkets and superstores across Ireland selling fresh food, groceries and household products, as well as clothing, books, hardware, electrical goods etc in larger stores. Services offered include Tesco Mobile, Tesco Personal Finance, and a nationwide online grocery shopping service.
The financial results of Tesco Ireland are incorporated in the Tesco plc segmental accounts for Europe, in common with other major international businesses. None of the company’s peer group in Ireland publishes any financial data on their Irish operations (Dunnes Stores, SuperValu, Superquinn, Lidl GMBH, Aldi Stores, Marks and Spencer etc). Tesco is unique in publishing sales/turnover data for Ireland.