The company now has an opportunity to intensify its £1bn regeneration project, perhaps switching the emphasis to food, as the world wakes up to the fact that austerity-driven consumers ‘making do’ have taken real demand from the replacement and new product market in non-foods….
Financial emphasis
Given the city’s focus on financial performance, then Tesco will need to demonstrate its new direction by squeezing costs and driving sales, whilst becoming potentially even more appreciative of the financial value of brands.
Suppliers in turn need to be able to calculate and demonstrate the impact on the Tesco P&L of margin, credit, settlement discount, ATL, trade funding, GMROII and even deductions…
An opportunity for financially articulate NAMs to sound like Tesco think?
A virtual US presence?
Meanwhile, a 100% withdrawal from the US probably means that despite an otherwise global success, Tesco will find it impossible to re-enter the US in the next 10 years. However, leaving aside a traditional 20th century bricks & mortar approach, Tesco could demonstrate its 21st century vision by building and maintaining a virtual presence in the US via:
- Private label via an agency network to build brand awareness
- Online: as a leading online player Tesco could use a combination of local partners in appropriate categories
An opportunity for suppliers in relevant categories?
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