Tesco (LON:TSCO) saw its sales rise in Ireland in the 12 weeks to November 5, the latest industry numbers have shown. Britain’s biggest supermarket has benefitted from lower prices, with customers having paid two percent less than in the prior-year period.
At home, Tesco’s share price has jumped in today’s session, having added 1.25 percent to 187.00p as of 13:08 GMT, outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.13 percent higher at 7,389.91 points. The group’s shares have lost about 12 percent of their value over the past year, and are down by just under 10 percent in the year-to-date.
Sales in Ireland rise
Kantar Worldpanel Ireland said in a statement today that the strongest grocery sales growth in the country had come from Tesco in the 12 weeks ended November 5, with the company posting a 5.1-percent rise. The group’s market share meanwhile climbed to 21.9 percent during the reported period from 21.3 percent a year ago, putting the company in the third spot, behind market leader Dunnes Stores at 22.4 percent and SuperValu, which captured 22 percent of the Irish grocery market.
Tesco “is the only one of the top five not to lose shoppers this year, and customers have been tempted in by lower prices,” David Berry, director at Kantar Worldpanel, commented in the statement, adding that customers on average had paid two percent less “than this time last year and in turn this has contributed to shoppers making bigger trips and returning to store more often”.
Today’s update comes after the previous industry data revealed that Tesco had been tied with SuperValu as Ireland’s biggest supermarket in 12 weeks ended October 8.
Analysts on Tesco
The 16 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 189.50p on the shares, with a high estimate of 270.00p and a low estimate of 155.00p. As of November 18, the consensus forecast amongst 22 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.