Q1 Trading Update for Ireland

Thursday 13th June, 2019

Hi everyone,

Further to Dave’s email this morning in relation to the Group Q1 Trading Statement, I wanted to give you some information about the performance of our business.

Firstly, I want to say thank you for your continued hard work. Whilst, the market remains highly competitive, we made good progress in the period and we can be proud of our achievements.

I’m pleased to let you know that in Q1, we delivered like-for-like sales growth of 1.3% and total growth of 2.7%, driven by a strong performance of seasonal events with upweighted trade offers, increased investment in our ‘You won’t pay more’ value campaign, better quality products and improved customer service.

Customers are responding positively to our investment in competitive pricing with customer transactions up year on year. In terms of category performance, Produce, Chilled, Bakery and Grocery have all seen strong growth in the period. Grocery Home Shopping continues to see double digit growth while all channels grew positively year on year.

We also did well across all the key seasonal events that fell in the first quarter such as Mother’s Day, Patrick’s Day and Easter. Our NPS remains at a record-high of +15 driven primarily by an increase in fans among our primary shoppers. We have seen growth across all age groups however we perform best amongst our younger shoppers, which is important for sustainable growth.

Some of the key highlights of Q1 include:

  • We introduced exciting changes to our Colleague Discount Scheme including the removal of a minimum spend, eligibility after six months and the ability to nominate a family member living at the same address to receive their second Discount Card.
  • We continued to invest in our best store in town programme, offering customers an improved in-store experience
  • We have donated 8 million meals to local charities across Ireland through our surplus food donations programme. We have also helped over 12,000 local projects nationwide through our Community Fund and we’ve raised over €4.3 million for Temple Street to date.

We’re also today updating on our Big Six performance:

It’s encouraging to see that customers continue to respond positively to the significant investments and improvements we’re making.  Let’s continue to build that momentum throughout the year.

Thank you for continuing to make Tesco a great place to work and shop.

Kari