SALES AT Tesco Ireland rose by 8 per cent to €1.34 billion in the six months to August 28th, the supermarket giant revealed yesterday.

The British retailer said 6 per cent of this growth was like-for-like from existing stores, while 2 per cent was attributable to new shop openings.

Tesco is also planning to open 11 new stores in Ireland by the end of February 2011 as it expands its footprint across the country.

Tesco said sales had rebounded in Ireland due to a number of changes implemented by the retailer last year to cope with the recession. “We have resumed growth and increased market share,” Tesco said in a statement.

“Customers are responding positively to our improved pricing and range.

“Significant uplifts in volumes have now more than offset the impact of sharply lower prices, resulting in positive like-for-like sales growth and a solid profit performance.”

The new stores are part of a €115 million investment by Tesco here that will create 750 jobs. Stores have already opened in Kinnegad, Co Westmeath, at Kimmage and Thomas Street in Dublin, and in Bray, Co Wicklow.

New stores are also believed to be slated for Naas; Ballybeg in Waterford; Oranmore and Newcastle in Galway; Swinford in Mayo; and at Fairview and Fleet Street in Dublin.

Globally, Tesco said its trading profit, a measure that excludes property gains, climbed to £1.69 billion in the six-month period from £1.55 billion a year earlier. This was ahead of analysts’ expectations.

Group sales were up by 8.3 per cent to £32.9 billion, while the firm announced a dividend per share of 4.37 pence, up 12.3 per cent on the same time last year.

Sales at Tescos international stores rose by 4.1 per cent in the second quarter, after being unchanged in the first quarter.

“The global economic headwinds of the last two years are being replaced by the tailwinds of recovery in most of our markets and this is helping our international businesses to resume strong sales and profit momentum,” chief executive Terry Leahy said yesterday.

“Our important Asian markets in particular are emerging strongly from recession and we are now benefiting from the substantial investment we continued to commit to the region during the downturn.”

To compensate for slowing growth in its domestic market, the supermarket group is spending £2 billion developing shopping malls in China and plans to extend its hypermarkets and franchise convenience outlets in South Korea.

The retailer is set to reshuffle its senior management team with Philip Clarke, director of international operations, taking over from Mr Leahy in March.