Tag Archives: retail

Tesco – who, what, when, where, why?

28 Jul

By Tim McKane

Tesco

Tesco is in the news again. Sales are falling, they are being hit by the arrival of Lidl and Aldi. The ‘big box’ out of towns stores which can be over 100,000 square feet are already out of date in the digital age, as more and more people go online to search and buy a wider range of goods. (Remember how short a time it is since people were saying that they would not buy on line?)

There are numerous changes in the market that will be impacting on Tesco. But I think that it is an old marketing element that has caused a lot of their problems.

Confusion.

Brands need clarity. People need to know that a brand will deliver a solution. The core value of Tesco when it was moving with a head of steam to become the largest retailer in the country by some way, was that they were the best value grocery stores with a great range at the best prices.

But that has changed. A visit to the store in Knocknagoney, recently refurbished tells us all we need to know.

Walk in the front door and you are met with all sorts of new in store shops. A phone shop. A beauty and pharmacy area. Clothes. Toys. Kitchen equipment. Electrical goods. Books. Videos.

But I want a loaf of bread.

And for that I have to walk to the very back of the store. So guess what. I am not going to drop into Tesco unless we need a number of items. I do drop into Tesco, and I wander around looking and browsing the wide range of goods, but how many TVs do I need?

The mind of the consumer is the life blood of a brand, and that is where Tesco need to fight the fight. Lidl and Aldi are delivering groceries at low prices. Simple.

If I were managing Tesco Knocknagoney, I would be thinking about putting the groceries at the front of the store. People are not stupid. They know that they are being sold to, but the main reason for going to Tesco is to buy food, not other goods, so don’t try to sell them first. Yes the margins are better, but if you start to lose your core brand values, it can be a real struggle to get them back.

Offline or online – it is still essential to stay true to your brand – and that is where Tesco have lost their way.

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