Philip Clarke, Tesco CEO, was interviewed on the BBC this morning about Tesco’s most recent performance. He had some interesting things to say, so I thought I would check out the company’s website to get more detail – which it singularly fails to do. I would describe it’s published “vision and strategy” as a wish list of aspiration, but not a strategy.
The company is in the news because it reported a 6% fall in group trading annual profit to £3.3bn and a fall in like-for-like sales of 1.4%. It is losing market share to the ‘discounters’ like Aldi and Lidl. But it does have a strategy designed to meet these competitive conditions, which includes:
- further develop its online grocery operation by offering non-food home deliveries in one-hour slots
- doubling the number of click and collect grocery sites at stores, train stations and transport hubs to around 500
- refurbish its existing hypermarkets, but slow down building new ones
- add 150 new local, convenience stores a year to the existing chain of 450 stores
- try to compete on price, but not rely on this as their main strategy
Source: Evening Standard 26 Feb 2014