Tesco sales of €786m checks out Dunnes figures

TESCO Ireland sales increase of 8.4% to €786 million for the first six months of the year puts the company neck-and-neck with secretive rivals Dunnes Stores.

Dunnes Stores keep their figures to themselves but it is believed the company had a turnover of 1,350m in the Irish Republic in 2000, according to the German-based European retail analysts M&M Planet Retail.

This indicates that full year results for the two wholly owned multiples in terms of turnover are very similar, but figures for Dunnes Stores in Northern Irelandhave revved up profitsto incredible levelsDunnes had a turnover of stg£206.7m for the year ending January 31, 2001, generating profits of stg£18.3m in Northern Ireland, an 8.85% pre-tax margin.

Tesco Ireland has recorded continued growth in the half year to August 10 last, with sales increasing by 8.4% to 786m. However, this rate of growth lagged Tesco as a whole where sales were up 10.6%.

The Irish turnover figures make up the “rest of Europe” category in Tesco results where turnover increasedby 6.8%. Tesco would not divulge how much profit its Irish operations generate.

Tesco Ireland continues to develop its Irish business with planning approvals granted for three new stores in Clare Hall (Dublin), Waterford and Youghal, and two replacement stores in Carlow and Letterkenny. Full planning approvals for petrol filling-stations at Killarney and Sandyford in Dublin have also been received. Tesco shrugged aside fears of slower growth in its UK stores after its overseas expansion helped to fuel a 13.3% jump in first-half profits.

Chief executiveTerry Leahy said the group was taking market share from its rivals and that shoppers wereprepared to spend despite economic uncertainty.

Like-for-like sales in Tesco’s UK business rose 3.9% in the six months to August 10, against 7% last year when the sector feasted off stronger inflation and the consumer boom. Mr Leahy said the dip reflected both price deflation and more normal trading conditions and forecast the sales growth would be “at the high end” when compared with the competition.

He predicted long-term like-for-like growth of 3% to 4% and added: “Last year was a one-off and these are good numbers. Like-for-like volumes were up 5.5% and this is very high.”