A leading analyst has said that Tesco’s recently improved performance in the Republic of Ireland is "representative of broad-scale group-wide progress" at the retailer.
Shore Capital's Clive Black was commenting following the publication of last week’s Kantar Worldpanel figures for the Irish market, which saw Tesco post its best period of sales growth since 2012, which he described as "a sign to our minds of both improved market conditions and self-improvement by the retailer".
Black noted that while he applies "a degree of caution to specific readings of implied sales performance", the trend is largely positive for Tesco in the Irish market.
On the wider Tesco group performance, Black added, "Each of the group’s operating divisions has improved focus, a leaner cost base, an evolving supply chain that is more effective, and so, a more competitive proposition.
"That self-improvement was evident in the welcome and surprisingly positive Q3 FY2016 statement, which put a brake on the downward spiral of the group’s shares."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.