Tesco Ireland has revealed that it is planning to spend €80m during its current financial year on eight new stores and the upgrade of dozens of existing sites.
The new openings will all be Express convenience stores, with refurbishment projects earmarked for 50 other outlets.
The details of the investment come as the retailer prepares to open its 167th store in Ireland next week on Scholarstown Road, Rathfarnham, in South Dublin.
Three more Express stores will open in Dublin by the end of the year, as well as other stores in Cork and Waterford.
Tesco Ireland Chief Operating Officer, Geoff Byrne, noted that the investment figure of €80m was a “fairly significant step-up from what we have been spending. But that’s typical going forward, I’d expect us to keep that pace for the next few years.”
He added: “We have an ambitious development strategy for the business and are very excited to be expanding our Tesco Express model. We remain as committed as ever to delivering a rewarding shopping experience for our customers, which offers real value.
“Our Tesco Express model is proving very successful in urban settings and reflects evolving consumer demand for greater convenient shopping opportunities in high footfall areas.”
Byrne stated that he’d like to see Tesco opening 10 Express stores a year in Ireland but highlighted the difficulty in finding the right sites and getting planning permission.
He added: “In terms of big supermarkets, there won’t be as many, but I think there’s still room for more Tesco supermarkets. There are quite a few towns in Ireland that don’t have a Tesco, and our ambition would be that we want everyone to be able to get to Tesco. We’re investing because we think the Irish economy is a great story.”
Commenting on soaring food inflation, Byrne said: “I don’t think we’ll have another 12 months like we had the last 12 months – I think it will moderate. I think there will always be good offers.
“One of the great things about supermarkets, is supermarkets are a very transparent marketplace, and you can see everything in front of you. And you can spot products, and you pick offers. And I think people are very smart about the way they shop now.”
Tesco launched a campaign of price cuts in Ireland earlier in the summer to reflect an easing of cost pressures.
NAM Implications:
- Worth taking these Tesco plans as read…
- …and conducting ‘what ifs’ re your Tesco Ireland business.
- At least to provide a basis for accessing your fair share of sales and investment.
