Tesco latest results indicate that apart from some local share slippage, their profit performance (Op profit margin of 6.2% in the one of the worst recessions in recorded history) indicate that they continue to provide a template for retail everywhere.
Essentially, they are simply good shopkeepers, doing simple things very well, while others are maintaining like-for-likes at a cost to the bottom line.
The options for suppliers include investing for growth with Tesco, and encouraging initiatives by other retailers that apply 'Tesco' principles such as meeting consumer-shopper fact-based need, space & supplychain optimisation, strong trade partnerships and effective use of money. (see how) for Namnews subscribers.
Sure, this will make Tesco an even greater, more powerful part of of your customer portfolio, and tougher to deal with, but the resulting skills are transferable, if you agree that the 'Tesco-template' is right for you. It also makes it easier to recognise the same qualities in other customers.
Find out how on our new webinars (H&B) & (Grocery+Nonfood )
Alternatively, why not short-change Tesco and invest the savings in 'weaker' customers, and see where that leaves you….
P.S.
Good video analysis of Tesco results on Financial Times
See Sky 3.5 min interview with Terry Leahy including suppliers, Value &
Discount ranges etc. on YouTube
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