Tuesday 25 October 2016

Tesco Ireland worst performer


Tesco's Irish arm was the worst performer of any of the retail giant's businesses last year, as the group swung to a massive £6.4bn (€8.9bn) loss on the back of property writedowns. It's the biggest ever recorded in Tesco's near 100-year history.

Like-for-like sales in Ireland, including fuel but excluding VAT, fell 6.4pc in the last financial year to €2.55bn from €2.69bn. The difficult performance here also curtailed overall profits at Tesco's European divisional segment, which does not include the UK.

Tesco recently lost its position as the top grocery retailer in Ireland, yielding the pole position to SuperValu, the brand controlled by Cork-based group Musgrave.

Tesco's finance director Alan Stewart conceded the Irish market remains tough.

"Our Irish business has faced strong discount pressure," he told investors.

Dunnes Stores in particular has piled pressure on rivals as it spent tens of millions of euros to run huge discount promotions. Tesco has struggled in all its markets.

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