Tesco lifts Irish turnover

Sales at Tesco's 76 supermarkets in the Republic rose by 8.4 per cent to £1.06 billion (€1.35 million), for the year to February 28th, the company said yesterday. It did not, however, disclose separate profit figures for its operations in the Republic.

Managing director, Mr Maurice Pratt said Tesco's market share remained at 21 per cent by the end of the year. "We were happy with this performance considering the re-branding and refurbishment programme we took on during the period," he added.

The company had advanced plans for two new stores "in the south and in the west" and hoped to develop further sites later.

But he said the company wanted to see supermarket planning guidelines from the Minister for the Environment, Mr Dempsey, before deciding on its long-term store development programme.

While the company initially decided to spend £76 million, it is expected this will increase as the programme continues, possibly rising by more than £10 million by the end of the programme in two years time.

By 2002, the company expects to buy £997 million in produce from Irish suppliers and in the year under review it had increased its buying from Irish companies by 12 per cent to £770 million.

It said about 50 per cent of its food sales involved Irish-made products and 230 of its own-brand products were produced in Ireland.

In relation to overcharging at its stores, it said the accuracy of "its pricing procedures" were in line with "industry norms". Employment, which stands at 10,000, had increased by 20 per cent since Tesco took over Quinnsworth two years ago, the statement said.

In the UK, growth in sales and profits slowed down sharply at Tesco in the 12 months to February 27th under the combined impact of weaker growth in consumer spending, intensifying competition and expansion costs.

Full year pre-tax profit increased 7.8 per cent to £881 million sterling on turnover up 6.3 per cent at £18.5 billion with UK sales up only 4 per cent comprising volume growth of 2.5 per cent and price inflation of 1.5 per cent.