Tesco still pleased with trading levels in Ireland despite 6% sales decline 

Supermarket said sales drop reflects an 'exceptionally strong performance last year'

Tesco Ireland generated sales of £641m (€750m) during the three months to the end of May. 

Tesco has said it is pleased with how it is currently performing in Ireland despite the supermarket giant’s first quarter figures showing a 6% drop in Irish-based sales.

Tesco Ireland generated sales of £641m (€750m) during the three months to the end of May. 

That was down by 6.1% on a year-on-year basis, but up 13% when measured against pre-pandemic levels in the first fiscal quarter of 2019.

“I am pleased with the performance of the business during the first quarter of 2021, where we continued to face further challenges brought on by Covid-19,” said Tesco Ireland chief executive Kari Daniels.

“The market continues to reflect the year-on-year challenges, in light of the extraordinary market activity in the first quarter of 2020,” she said.

In its quarterly update, Tesco said its sales decline in the Republic reflects an “exceptionally strong performance last year”, while growth seen last year reflected an earlier lockdown period and a higher conversion of out-of-home consumption.

On an overall group basis, Tesco said it grew first quarter sales by 1%, year-on-year, to £13.4bn. 

Against the first quarter of 2019, group retail grocery sales were up by over 8%.

Group chief executive, Corkman Ken Murphy, said management remains upbeat regarding this year’s prospects.

"While the market outlook remains uncertain, I'm pleased with the strong start we've made to the year and continue to be excited about the many opportunities we have to create value over the longer term," he said.

New figures show British retail sales fell last month as the lifting of lockdown restrictions resulted in people spending more money in restaurants and bars than in shops. 

Grocers and food retailers took the biggest hit with a combined 5.7% drop in sales.