BUOYANT sales growth in the highly competitive British food retailing market is continuing to be achieved at the Tesco supermarket group due to open its first Irish outlet in the centre of Belfast at the end of next month.
Overall, first half British sales increased 12.6 per cent in to £6.3 billion sterling, partly due to new store openings. Like-for-like sales growth at existing stores hit 7 per cent, comprising underlying volume growth of 3 per cent and price inflation of 4 per cent.
With European sales up 41 per cent at nearly £400 million reflecting new store openings, the group's total turnover showed a 14 per cent increase to £6.7 billion. Strong sales growth helped to lift interim pre-tax profits by 10.7 per cent to £321 million, excluding profits on fixed asset disposals.
Chairman, Sir Ian MacLaurin said the strong sales growth had continued into the first five weeks of the second half with total British sales increasing 13 per cent. Growth in British sales was benefiting from key initiatives including value-for-money pricing campaigns, the group's loyalty "Clubcard" providing discounts on future purchases, increasing numbers of own-brand products and flexible store formats, he said.
The Belfast opening for the 12,500 sq ft Metro store in Belfast is to take place on October 29th, Tesco said yesterday. The outlet is being described as a "basket" store selling a wide range of food. But Tesco's other projected openings remain bogged down in the planning system.
A public inquiry is currently looking at the group's plans for a 34,000 sq ft "trolley" supermarket at Lisburn, Co Antrim. Plans for a 50,000 sq ft "trolley" superstore on the Knocknagoney Road, east Belfast, were the subject of a public inquiry earlier this year. The public inquiry is expected to re-open in December.
