Tesco's 151 stores in Republic post double-digit sales growth

Tesco shares climbed 7% as the retailer also lifted its full-year operating profits outlook to as much as £2.6bn (€3.06bn)

Tesco increased sales despite the well-known dislocations to European and global supply chains that have been exacerbated by Brexit. 

The 151 stores Tesco operates in the Republic are posting double-digit sales performances and outperforming comparable numbers for the UK and the rest of Europe, the grocery giant's latest financial numbers show. 

Group sales for the British grocery retail giant, which also has a significant number of outlets in the Czech Republic, Hungary, and Slovakia, jumped 3% to over £27.3bn (€32.1bn) in the first half of its financial year.

Tesco increased sales despite the well-known dislocations to European and global supply chains that have been exacerbated by Brexit.          

Tesco shares climbed 7% as the retailer also lifted its full-year operating profits outlook to as much as £2.6bn. 

The latest Tesco numbers show that like-for-like sales have now soared by over 12% in the Republic over the past two years, a period that takes account of any effects from the pandemic. 

UK sales grow 9%

Sales in the UK, which include Booker catering, grew 9% in the same period. 

Sales growth in the Republic in the first half of the year was even more impressive, with an increase of 15.5%. 

That compares with the 7.6% growth rates posted in the UK and a 1% decline in sales for its central European outlets.        

Including other branded stores across the group, Tesco has 3,658 outlets in the UK and 151 outlets in the Republic.

It also operates 536 stores in the three central European countries.             

Tesco does not officially break out the profits it generates in the Republic compared with the UK. At £1.3bn, operating profit from both territories at the half-year stage climbed 16.5% from a year earlier.   

"We've had a strong six months; sales and profit have grown ahead of expectations, and we've outperformed the market," said chief executive Ken Murphy.

Figures from market researcher Kantar last month showed the big five supermarkets in the Republic — SuperValu, Dunnes, Tesco, Lidl, and Aldi — had gained market share to over 90% during the pandemic in a grocery market worth around an annual €13bn.  

The Kantar survey showed that at 22.5%, SuperValu had the largest share of the sales in the latest survey, ahead of Dunnes and Tesco which both recorded shares of 21.4%. 

Lidl and Aldi were almost neck and neck with shares of 12.8% and 12.7%, respectively.

In Britain, Tesco has a 27% share of the grocery market.