Sales at Tesco stores in the Republic fell by 2.4 per cent during the first quarter of 2022 when compared with the same period last year, but were still ahead of pre-pandemic levels, the group’s latest set of results show.
Tesco’s sales performance for the 13 weeks up to May 28th, 2022, includes a three-year like-for-like sales growth which represents a comparison versus its pre-pandemic performance in 2019.
It shows Tesco’s Irish stores generated sales of £612 million (€715 million) in the quarter, which was down 2.4 per cent compared with last year when the country was in lockdown, but was 10.1 per cent higher when compared with 2019.
Tesco said the sales decline could be attributed to the high level of restrictions last year, which was partially offset by inflation. The group’s market share growth in the Republic was up 11 basis points.
Tesco Ireland chief executive Natasha Adams said she was pleased with the first-quarter performance.
“As the market continues to normalise, following the extraordinary market activity in 2020 and 2021, I am pleased that we are growing ahead of the market and seeing strong performance in our online business. Our colleagues across the business continue to work hard to deliver for our customers and communities and I thank them for their support.”
Tesco group chief executive Ken Murphy said, meanwhile, that the market remains “incredibly challenging” for retailers.
“Whilst the market environment remains incredibly challenging, our laser focus on value, as well as the daily dedication and hard work of our colleagues, has helped us to outperform the market,” he said.
“Our material and ongoing investment in the powerful combination of Aldi price match, low everyday prices and clubcard prices is removing the need for customers to shop elsewhere.
“Although difficult to separate from the significant impact of lapping last year’s lockdowns, we are seeing some early indications of changing customer behaviour as a result of the inflationary environment.
“Customers are facing unprecedented increases in the cost of living and it is, therefore, even more important that we work with our supplier partners to mitigate as much inflation as possible.”
Overall, Tesco achieved sales of €13.6 billion in the quarter, which was up 2 per cent compared with last year and almost 10 per cent compared with 2019.
In terms of outlook, it said: “At this early stage in the year, our guidance ranges for profit and cash remain unchanged.”
