Tesco Ireland has achieved its first quarter of like-for-like sales growth since 2010, the retailer’s UK parent company has said.
Like-for-like sales, which exclude the contribution of stores open for less than a year, grew 0.4 per cent in the 13 weeks to May 26th, the first quarter in Tesco’s fiscal year. This compares to a decline of 0.7 per cent in the previous quarter.
Tesco said its performance in the Republic was “improved”, but “uncertainty over the future of the euro zone and the potential impact of any further disruption had resulted in very low consumer confidence” in Europe.
“Our general merchandise, clothing and electrical performance reflects this.”
Because of its greater emphasis on non-food items, Tesco is more exposed than most supermarket chains to dips in consumers’ discretionary spend.
Tesco, the world’s third-biggest retailer, reported a drop in underlying first-quarter British sales yesterday, as a recovery plan following its shock profit warning in January struggled to gain traction.
(Additional reporting: Reuters)