Wednesday 17 April 2013

Tesco Ground Clearance - Non-partner suppliers?

With their latest results revealing the first profit fall in 20 years, it is obvious that Tesco have used the opportunity to announce the clear-out of non-performing assets such as US operation, UK property write-downs, and potential sale of 100 sites it no longer plans to develop.

Logically, this ‘clearance process’ could now extend to non- performing brands and products, resulting in a review of supplier-partner relationships with a P&L by supplier as the ultimate measure…

A way forward?
While others may be scratching their heads and wondering what went wrong, proactive NAMs could benefit from re-auditing their Tesco relationship, reassessing how they well they match the new Tesco austerity-profile, the extent to which they and Tesco are compatible and complementary, compared with other suppliers in the category, and explore potential synergies…

In other words, imagine you are pitching for the Tesco business for the first time, taking a totally fresh look at the company’s market potential and financials, comparing with competitive offerings currently available, all from Tesco’s perspective…then find a way of optimising the potential...

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