Tesco increases Irish market share for third consecutive year as supermarket giant raises profit outlook
By Emer Walsh,Irishexaminer.com
Copyright irishexaminer
The grocery giant said total sales rose by 6.5% at constant rates, helped by the opening of three new stores in the Republic last year, comprising two large stores and one Tesco Express.
The retailer also noted a surge in online sales in the Republic, which grew by almost 19% and was underpinned by the launch of same-day delivery last year.
Tesco also welcomed an 11 basis point rise in market share in the Republic last year, rising to 23.7% which the group said consolidated three years of consistent market share gains.
Total revenue in the Republic of Ireland grew by more than 6% in the first six months of this year, rising to £1.54bn (€1.77bn).
The food retailer, which is the largest of its kind in the UK, raised its full-year profit forecast and welcomed continued momentum ahead of the festive trading period, and now expects as much as £3.1bn (€3.56bn) in group adjusted operating profit this year, up from as much as £3bn.
Across both the UK and the Republic, Tesco reported a first-half adjusted operating profit of £1.67bn (€1.9bn), which was up 1.5% compared to the same period last year.
Speaking on its results, chief executive of Tesco, Ken Murphy, said: “I am pleased with our first half performance, which builds on already strong momentum.
“The steps we have taken to keep prices down for customers have improved our price position relative to the market.
“We are also continuing to invest in our long-term growth, leveraging technology to drive more personalised engagement through Clubcard and deeper retail media reach across channels and suppliers.”
Mr Murphy added that competitive intensity remains high, with continued pressure on household budgets.
Figures for Ireland released by the Central Statistics Office (CSO) this week found that while food prices fell marginally on a monthly basis, they rose by 4.7% over the last 12 months, which is significantly higher than the general pace of inflation.
“We’re taking nothing for granted in the second half. Competitive intensity remains elevated with household budgets under pressure,” he said, adding that the grocer is working hard to minimise the effect of inflation on consumers and is raising prices less than the rest of the market.
