Where not to find out Tesco’s strategy

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

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This entry was posted in Chap 14 Operations strategy, Sector: Retail and tagged , . Bookmark the permalink.

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