Tesco sales have gone backwards after a month of strikes

TESCO HAS LOST ground on its competitors over the past several weeks as its growth in the Irish market stalled in the midst of industrial strike action.

The retailer enjoyed three months of growth at the tail end of 2016 as its market share increased by 1% to 22.4% over the Christmas period alone.

However, according to research from Kantar Worldpanel, the company’s market share has fallen to 21.7%, which placed the retailer further behind rivals SuperValu and Dunnes Stores.

Sales also dropped by 1% during the 12 weeks to the end of 26 February.

During this period, the retailer also saw 11 days of industrial action by workers, however, this action was suspended at the end of February as both sides agreed to meet in the Labour Court.

The issue revolved around a dispute over long-term staff being asked to sign up to contracts that would reduce their pay.

In total, staff from 16 stores nationwide hit the picket lines during February, with workers from six more shops due to join them before the strike action was suspended.

Elsewhere in the supermarket results from Kantar, Dunnes saw 4.6% of growth as its market share hit 22.9%, compared to its next closest competitor SuperValu, which now has 22.6% of the market.

German chains Lidl and Aldi propped up the list with roughly 10% of the market each.

This is the first time Dunnes has consolidated its position as Ireland’s most popular supermarket for two consecutive months.

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Boycott

The dispute between a cohort of Tesco workers and the company has taken a few interesting turns during the industrial strike period.

Mandate trade union, which represents about 11,000 of Tesco’s 14,000-strong Irish workforce, did not call for an outright boycott of Tesco during the strike period, but urged its members to “shop with their conscience”.

Tesco hit back at the union and said it was “shocked” by Mandate’s conduct. The company also released an advertising campaign which advised consumers that “all Tesco stores remain open” despite the strike action.

Mandate criticised the company for the advertisements in question, which also called on the union to “stop their unjustified strike action”.

The union said: “These ads are about pushing customers passed the picket lines.”

The retailer said that 45,000 people shopped in the 16 stores picketed by strikers during the weekend of 18 and 19 February.

Since the strike action was suspended by Mandate, both the union and Tesco have agreed to appoint a mediator to help broker a deal between the two parties.