Tesco’s €2bn sales landmark

SALES in Tesco’s Irish stores shot up 12% to €2.1 billion last year, the supermarket giant said yesterday.

The company broke the €2bn sales barrier for the first time in the year to February and put the increase down to new stores and its strategy of cutting prices to win business from rivals.

The company did not disclose its Irish profits but these are estimated at more than €100m. Ireland accounts for around 4% of the company’s total sales and is one of the group’s biggest markets outside Britain.

Overall group results were strong, with total sales increasing 12% to £37bn (€54bn) and pre-tax profits 25% ahead at just under €2.9bn. Chief executive Terry Leahy said the results showed the “broad appeal” of the Tesco brand and that the group’s international businesses were one of the main drivers of growth.

The group’s decision to diversify into new countries and non-food products and services had paid off, with new businesses making as much now as the older core business in Britain did in 1997, he said.

The group added 860 people to its Irish workforce during the year, bringing the total to 11,800. Seven new stores opened for business, including one in Cork’s Mahon Point and a new format, Tesco Extra, in Clare Hall in north Dublin.

Another six stores are scheduled to open this year.