Tesco Ireland has defended price levels in its Irish stores, as it reported a 9.5% rise in sales to €1.9 billion for the year to the end of February.
Speaking on RTE radio, Tesco's head of corporate affairs Dermot Breen said the company had created 1,500 jobs in Ireland last year and expected to create another 500-600 this year through expansion.
Asked about the recent controversy sparked by retail magazine Shelflife, which compared Tesco prices in Britain and Ireland, Mr Breen said there had been much 'misleading hysteria' about claims that prices in British stores were much cheaper.
He said Ireland was a higher-cost country, which meant prices would be higher. He also claimed that Shelflife did not compare like with like in its survey. Mr Breen said Tesco was cheaper than its Irish competitors and had spent €50m on cutting prices in Ireland in the last two years.
Tesco Ireland now employs more than 11,000 people. Five new stores were opened during the year, bringing the number to 83 in the Republic.
Tesco Ireland chief executive Gordon Fryett said the company would be opening seven new or replacement stores this year.
Online shopping sales grew by 50%, and there are now 110,000 online shopping customers. The company says petrol sales at its two filling stations have been 'exceptional'. Three more will be opened this year.
Meanwhile, Tesco Ireland's British parent has announced record annual pre-tax profits of £1.6 billion for the year to the end of February, a rise of 17.6% on a year earlier.
Turnover grew by 18.7% to £33.6 billion, led by a 29% rise in international sales.
