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

Chinese spending hits record high on Singles' Day
13/11/2019 - 13:53
Chinese consumers spent a record amount on Alibaba platforms on Monday during the annual “Singles’ Day” buying spree, the world’s biggest 24-hour shopping event, which was launched with a glitzy show by US singer Taylor Swift.

Spar sees big jump in profit as consumers turn to store labels and alcohol
13/11/2019 - 11:43
Listed retailer Spar has published its financial results for the full year ended September 2019, reporting an 8.4% jump in revenue, with operating profits up 7.2% despite tough conditions across its operations.

What does the Retail Customer of the Future look like?
13/11/2019 - 09:28
Today’s retailers face a difficult challenge. Online shopping is attracting consumers to the convenience of desktop browsing, and away from the buzz of brick and mortar stores.

Woolworths boosts Earth Friendly range and launches plastic alternative products
12/11/2019 - 14:01
More than ten years ago, Woolworths pioneered its own label of eco-friendly products in South Africa with the launch of its Earth Friendly range of household cleaning products.

Sales at Truworths Africa outperform its UK business
12/11/2019 - 13:24
Truworths, which was forced to write down its UK business by a third recently, said that retail sales in that country were flat in the 18 weeks to November 4, although its African operations performed better.