Tesco Ireland sales fell 4.4% in the first quarter of 2015, coming on the back of a 6.7% drop in sales for the last three months of 2014.
While still a drop in sales, it is less than the 5.5% drop Tesco Ireland reported for the first quarter of 2014.
The company has released its first quarter trading statement ahead of its AGM, which takes place today (Friday).
The supermarket giant also saw a drop of 1.3% in sales in the first quarter in its UK stores.
UK first quarter sales in 2015 declined by 1.3%, an improvement on the decline of 1.7% in the fourth quarter of 2015 on the same basis.
Tesco said this is despite significant deflation driven both by its own price investments and by weakening commodity markets.
Dave Lewis, Chief Executive of Tesco, said that the company is fixing the fundamentals of shopping to win back customers.
“These improvements have come during the restructuring of our office and store management teams, which testifies to the focus, skill and commitment of colleagues across the business.
“Whilst the market is still challenging and volatility is likely to remain a feature of short-term performance, these first quarter results represent another step in the right direction,” Lewis said.
Lewis said that the company has also seen an improved performance in its international markets, as we continue to focus on serving customers better.