Advertise with fastmoving.co.za
 
 

Tesco, Britains biggest retailer, said it is considering a trial of an upmarket convenience store under the 'Tesco finest' banner but has not disclosed when or where the pilot will be launched.
Tesco, Britains biggest retailer, said it is considering a trial of an upmarket convenience store under the 'Tesco finest' banner but has not disclosed when or where the pilot will be launched.

Tesco says no timetable for 'finest' store launch

INTERNATIONAL NEWS

Reuters - Jun 20th, 09:10

Tesco, Britains biggest retailer, said it is considering a trial of an upmarket convenience store under the 'Tesco finest' banner but has not disclosed when or where the pilot will be launched. 

Tesco recently hosted a capital markets day for analysts and investors at which it presented a slide flagging an opportunity for a ‘Tesco finest’ store concept with a 7 percent operating margin - significantly ahead of the group-wide target of 3.5 percent to 4 percent.

The premium ‘finest’ range of grocery products is Tesco’s most expensive.

"‘Tesco finest’ as a brand is one of the largest food brands in the country. We have a very high percentage of more upmarket customers,” Chief Executive Dave Lewis told reporters..

“The opportunity to curate that range and bring new things in a more convenient outlet is something that we have tested, is something we’re interested in.”

But Lewis said Tesco is: “Not at a place where we are saying we’re going to open this shop or this many shops.”

The Chief Executive said the point of the capital markets day was to share with investors a number of growth opportunities Tesco is actively looking at without giving specific details on timings.

“No dates for any of the initiatives were given,” he said.

News of Tesco’s new concept sent shares in upmarket food retailer Marks & Spencer down as much as 4.5 percent on Wednesday on competition fears.

Last year Tesco launched the Jack’s chain to compete with German-owned discounters Aldi and Lidl.

Other initiatives Tesco discussed include opportunities to sell more unique brands and online meal subscriptions, developing its Clubcard loyalty program with a subscription model, setting-up mini fulfillment centres at the back of stores for online grocery, and delivery robots.

Celebrating its 100th year, Tesco is deep into a recovery plan under Lewis after a 2014 accounting scandal capped a dramatic downturn in its fortunes.

He said in April Tesco had met, or would soon meet, most of the turnaround goals he set in 2016, including a key margin target of earning 3.5 to 4 pence of operating profit for every pound customers spend by the end of its 2019-20 financial year.

Lewis said he did not issue a new margin target at the capital markets day.

“We said there was more opportunity for us to lower cost and that gave us the opportunity to invest back in the customer offer (and) new propositions, or if none of those were available then the opportunity would be to improve margin,” he told reporters.
IOL 

Related News

Shoprite targets rivers on World Cleanup Day
19/09/2019 - 14:59
The Shoprite Group has partnered with the South African Department of Water and Sanitation to host river cleanups on World Cleanup Day (21 September 2019) and everyone’s invited to join in.

Zara launches online store in South Africa
19/09/2019 - 11:58
Zara has launched its online sales in SA through its dedicated website zara.com/za. This marks an important milestone in the expansion of Zara’s integrated store and online platform into markets where it already has a store presence.

Pick n Pay launches collectable Rugby Super Cards
19/09/2019 - 11:28
Local sports fans can once again feel part of the upcoming rugby tournament thanks to the launch of Pick n Pay’s new Rugby Super Cards.

The V&A Waterfront’s Victoria Wharf is SA’s greenest shopping centre
19/09/2019 - 09:13
The V&A Waterfront’s far-reaching waste management and recycling practices has earned the property a prestigious Green Buildings Council of SA (GBCSA) 5 Star Green Star Existing Building Performance v1 certification (EBP v1) for the popular Victoria Wharf Shopping Centre – the highest rating for any existing shopping centre in South Africa.

Ackermans launches ‘Moms4Moms’ educational platform to give mothers a helping hand
16/09/2019 - 14:03
According to a 2017 Statistic South Africa report, 61% of South African children are raised by only their mothers. This reveals that the majority of South African women have to navigate single-parenthood, as well as being the sole provider for their families.