Tesco share price: Grocer’s sales rise in Ireland

Tesco share price: Grocer’s sales rise in Ireland

Tesco (LON:TSCO) saw its sales rise in Ireland, while customers remained flat, the latest Kantar figures have showed. The news comes after it emerged last week that the FTSE 100 group’s UK grocery sales had climbed 1.7 percent during the same period, marking the supermarket’s  fastest rate of growth since September last year, while its market share slipped.

Tesco’s share price has fallen into the red in London in today’s session, having given up 0.49 percent to 223.90p as of 09:57 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.30 percent higher at 7,150.29 points. The group’s shares have added just under 12 percent to their value over the past year, as compared with about a 0.2-percent dip in the Footsie.

Sales rise in Ireland

Kantar Worldpanel announced in a statement yesterday that the Irish grocery market had followed up a record-breaking festive period with year-on-year sales growth of 3.4 percent during the 12 weeks ending January 27. At Tesco and sales rose 1.5 percent during the reported period, while customers remained flat. Kantar noted that just under 70 percent of the rise in sales at Britain’s biggest supermarket had come from its own label ranges.

Analysts on Tesco

The 15 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 275.00p on the shares, with a high estimate of 305.00p and a low estimate of 200.00p. As of February 9, the consensus forecast amongst 22 polled investment analysts covering the blue-chip grocer has it that the company will outperform the market.  

Tesco updated investors on its performance last month, posting a rise in sales for the third quarter as well as for the crucial Christmas period. 

As of 10:16 GMT, Tuesday, 12 February, Tesco PLC share price is 224.80p.

By Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

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