Tesco Ireland Sales Grow By 3% Over Last Three Months

Irving Hamilton
June 18, 2018

'Tesco's turnaround story continues to gain traction with the key performance metrics mostly pointing in the right direction apart from ongoing weakness in Asia, ' says Russ Mould, investment director at AJ Bell.

The rise of Aldi and Lidl and the growing popularity of online sales has forced traditional groups Tesco, Sainsbury's, Walmart's Asda and Morrisons to rethink their strategies.

"Performance improved through the quarter (after taking the timing of Easter into account), recovering from the impact of adverse weather conditions experienced in March", Tesco said in its quarterly report.

"This decision has been a very hard one to make, but it is an essential step towards establishing a more sustainable non-food offer and growing our business for the future", said Tesco chief executive Charles Wilson.

Group like-for-like sales at Tesco for the first quarter of its financial year were up by 1.8% while Booker reported comparable sales growth of 14.3%.

The Competition and Markets Authority approved Tesco's multibillion-pound takeover of Booker in December 2017.

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Lewis said the food market was proving more resilient than other retail sectors where he noted that "business failures this year have been unprecedented".

The group delivered positive like-for-like growth for a tenth consecutive quarter, with an improvement of 1.8%.

As part of Tesco's recovery it has bought wholesaler Booker for £4 billion to expand into supplying restaurants, cafes and local shops. However, a Sainsbury's/Asda combination would top that.

"Our growth plans are on track and we are pleased with the momentum in the business", said Lewis, who joined Tesco in 2014 shortly before the accounting scandal was uncovered. Lewis said Tesco planned to submit its thoughts on the deal to United Kingdom regulators.

Already this year Toys R Us UK, Maplin, Conviviality and Poundworld have collapsed, while Marks & Spencer, New Look, Carpetright, Mothercare and House of Fraser are closing stores.

"Constantly looking for the amount of money that's coming out of bricks and mortar is not sustainable long term and we look for the government to think about that".

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