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21/04/2009
Tesco 'Missing Out' On Cross-Border Shoppers
Tesco - while making £billions in the UK - is having a harder time in the Republic of Ireland.
According to an internal memo obtained by a grocery trade journal, Tesco is being forced to cut prices in the Republic, and the supermarket giant is concerned that like-for-like sales are "well below expectations".
Cross-border shopping is damaging Tesco's brand, said Retail Intelligence. It has reported goods such as household products and beauty items as being particularly affected.
Tesco posted the highest profits on record for a UK retailer today, but in the memo, it said sales lost by Tesco stores in the Republic were not being recouped because the company does not have a strong presence in border towns such as Newry and Enniskillen where rivals like Sainsbury and Asda have benefited from the southern exodus.
The effect on the Irish economy of shoppers heading North was acknowledged in an emergency budget earlier this month, when duties on petrol and alcohol were unchanged in an attempt to stem the tide of shoppers taking their business across the border.
Tesco reported annual pre-tax profits of £3.13bn, an improvement of 10% on the previous year.
However, the supermarket chain did not give a detailed breakdown of its performance in the Republic, but it did say business had been helped by favourable movements in the euro-sterling exchange rate.
Cross-border shopping - encouraged by the strength of the euro - has seen an estimated 4% of the total market move across the border.
See: Tesco Profits Soar Past £3bn
(BMcC/KMcA)
According to an internal memo obtained by a grocery trade journal, Tesco is being forced to cut prices in the Republic, and the supermarket giant is concerned that like-for-like sales are "well below expectations".
Cross-border shopping is damaging Tesco's brand, said Retail Intelligence. It has reported goods such as household products and beauty items as being particularly affected.
Tesco posted the highest profits on record for a UK retailer today, but in the memo, it said sales lost by Tesco stores in the Republic were not being recouped because the company does not have a strong presence in border towns such as Newry and Enniskillen where rivals like Sainsbury and Asda have benefited from the southern exodus.
The effect on the Irish economy of shoppers heading North was acknowledged in an emergency budget earlier this month, when duties on petrol and alcohol were unchanged in an attempt to stem the tide of shoppers taking their business across the border.
Tesco reported annual pre-tax profits of £3.13bn, an improvement of 10% on the previous year.
However, the supermarket chain did not give a detailed breakdown of its performance in the Republic, but it did say business had been helped by favourable movements in the euro-sterling exchange rate.
Cross-border shopping - encouraged by the strength of the euro - has seen an estimated 4% of the total market move across the border.
See: Tesco Profits Soar Past £3bn
(BMcC/KMcA)
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Hundreds of construction jobs are expected to be created following full planning approval for a new Tesco superstore. The store will be situated in Newtownards, north Down, on the site of the old Ards Abattoir off the Portaferry Road. The project, which includes a petrol station and parking spaces, will result in the creation of 200 retail jobs.
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Mid-Ulster regeneration on course says Minister
The regeneration plan for Lurgan and Portadown area is on course and will begin soon, Social Development Minister David Hanson said today.
Mid-Ulster regeneration on course says Minister
The regeneration plan for Lurgan and Portadown area is on course and will begin soon, Social Development Minister David Hanson said today.
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Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
