Menu
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)
Related Irish News Stories
Click here for the latest headlines.
25 January 2013
€2.1m Loses Recorded For Electric Picnic
Music festival Electric Picnic (EP) suffered a combined lose of €2.1m in 2011 and 2012. Despite this assurances have been made that this years event, marking the festivals 10-year anniversary, will go ahead. Concerns were raised in December when the traditional discounted “early-bird” tickets did not go on sale.
€2.1m Loses Recorded For Electric Picnic
Music festival Electric Picnic (EP) suffered a combined lose of €2.1m in 2011 and 2012. Despite this assurances have been made that this years event, marking the festivals 10-year anniversary, will go ahead. Concerns were raised in December when the traditional discounted “early-bird” tickets did not go on sale.
18 June 2008
Beleaguered Tanaiste Refuses Legal Move On Cross Border Food
There will be no legislative move to force supermarket food retailers to lower prices in the Irish Republic. Tanaiste and Minster for Trade and Enterprise Mary Coughlan is adamant that there will be no legal change to force retailers to cut their prices.
Beleaguered Tanaiste Refuses Legal Move On Cross Border Food
There will be no legislative move to force supermarket food retailers to lower prices in the Irish Republic. Tanaiste and Minster for Trade and Enterprise Mary Coughlan is adamant that there will be no legal change to force retailers to cut their prices.
24 April 2009
Cost Of Cross Border Shopping Again Underlined
While this week's UK Budget increase in the cost of alcohol will allow limited relief for the retail trade in the border counties of Ireland, the huge level of trade already being lost north has been confirmed. Northern Ireland's economy was boosted by around €500m (£450m) last year just from Southern shoppers in grocery outlets.
Cost Of Cross Border Shopping Again Underlined
While this week's UK Budget increase in the cost of alcohol will allow limited relief for the retail trade in the border counties of Ireland, the huge level of trade already being lost north has been confirmed. Northern Ireland's economy was boosted by around €500m (£450m) last year just from Southern shoppers in grocery outlets.
07 July 2008
Tesco Vegetable Oil Ban Extended
A suermarket's ban on vegetable oil bulk-buying is being extended right across Ireland. The ban, which was introduced by the supermarket and petrol supplier Tesco last year, will now even stretch to two small Waterford towns. Tesco has claimed these two areas should not be exempt.
Tesco Vegetable Oil Ban Extended
A suermarket's ban on vegetable oil bulk-buying is being extended right across Ireland. The ban, which was introduced by the supermarket and petrol supplier Tesco last year, will now even stretch to two small Waterford towns. Tesco has claimed these two areas should not be exempt.
-
Ireland WeatherToday:A dry and sunny start but cloud bubbling up with a few showers developing from late morning. Becoming dry and sunny along the east coast in the afternoon. Maximum temperature 12 °C.Tonight:Showers gradually die out to leave good clear spells in the evening and overnight. This will allow a few fog patches to develop in places. Minimum temperature 2 °C.
