Retailer Tesco remains under pressure in third quarter
International pressures remain challenging
SUPERMARKET giant Tesco said its third quarter performance in Ireland was impacted by extremely challenging conditions for consumers, compounded by intense competition.
The UK brand reported an overall drop in like-for-like sales of 1.5pc for the 13 weeks to end of November 23, blaming a “weaker grocery market” for the fall.
Like-for-like growth in Ireland fell 8.1pc, excluding petrol.
It said international pressures remained challenging, particularly in Ireland and Thailand.
The company said the recent introduction of Price Promise in Ireland would help to improve customer perceptions of its pricing.
Chief executive Philip Clarke said its third quarter performance reflected a challenging grocery sector impacted by the financial pressures on households.
“The actions we have taken to position the business for the future - including the work currently underway to transform our general merchandise offer and our decision to significantly reduce the amount of new space we open - are also holding back our sales performance in the short-term,” he said.
“Overseas, the near-term trading environment also remains tough, most notably in Thailand, but we have been able to drive a better performance in Poland and Turkey following the actions taken in the first half.
“We are confident that our strategic priorities - strengthening the UK business, establishing multichannel leadership and ensuring capital discipline - are the right ones and that they will drive long-term value and returns."
Group sales for the thirteen weeks ending 23 November 2013 increased by 0.6pc at actual exchange rates and by 0.2pc at constant rates, excluding petrol.
Including petrol, Group sales decreased by 0.8pc at actual exchange rates and by 1.2pc at constant rates.