Tesco Ireland sales up 0.4%

Tesco Ireland has recorded its first full-quarter positive sales growth since 2010, despite the continued uncertainty in the economy.

The British retail giant has been implementing a six-point recovery plan since it announced a profit warning in January after poorer than expected Christmas sales.

The success of the plan remains in question as the world’s third-largest retailers recorded underlying sales down 1.5% in its British operations.

The strength of sterling against the crippled euro impacted on sales but its European operations grew 6%, excluding its petrol retail operations.

Tesco chief executive Philip Clarke said that in spite of the economic conditions the company was performing well.

“Tesco has performed robustly in the first quarter despite subdued consumer confidence in all our markets. We are rapidly implementing our six-point UK plan and I’m particularly proud of the relaunch of our Everyday Value range and the fact we have now put extra staff into 700 of our stores, in 500 of them within the last three weeks alone. Our customers are seeing the evidence of the changes we’re making and they’re telling us they like what they see.”

Tesco group’s overall sales for the 13 weeks ending May 26 increased 2.2% and were helped by improved performances in Poland, Slovakia and Ireland, where like-for-like sales grew by 0.4%.

The Irish market recovered from a fall in sales of 0.7% in the same period of 2011. The fastest growing market for Tesco was the US where sales increased by 3.6%, although this figure was down from 12.3% growth for the same period last year.