Tesco Ireland reports growth in revenue
After a shaky year, things are looking up for Tesco, as illustrated by growth in several areas of the business...
12 October 2015
The long road back to the top continues for Tesco, with the company’s Irish arm reporting revenues of 1.23bn in the 26 weeks ending 29th August last. This represents an improved like-for-like performance of 3.7%, which the company says is supported by increased investment in customer experience as well as reduced prices.
In a statement, the company said it has seen an increase in sales transactions, positive volume growth and an improvement in customer loyalty in the first half of the year; all of which were driven by the company’s Staying Down initiative, which saw a reduction in prices of “everyday items” across Tesco’s range.
“We have brought the cost of shopping in Tesco down by giving customers simple value prices on the items that matter most to them,” said Andrew Yaxley, CEO of Tesco Ireland. “We’re improving the experience in our stores and online by investing in customer service and by simplifying our range to eliminate duplicates and improve availability.
“The grocery retail market is one of the most competitive in Europe,” Yaxley said, “but we’re really encouraged to see customers respond positively to the investment. Our priority over the last six months has been to simplify our business so that we can maximise our investment in price and service.”
Meanwhile, Tesco UK’s fortunes continue to wax and wane, with the company reporting a worse-than-expected fall in profits from £799m to £354m, alongside a 1.1% drop in like-for-like sales. Conor Campbell, analyst at www.spreadex.com points out that things are still incredibly tough for the biggest of the “Big Four”. “A surprisingly strong result from Sainsbury’s,” said Campbell, “and a better than expected year is causing a sector-wide surge. Every little helps indeed…”