Tesco Aiming To Get Market Share Back To 30% With Help Of Brands
Tesco has told suppliers that it wants to control 30% of the grocery market in the UK, a position it last held in 2012.
Latest data from Kantar shows that the market share of the UK’s leading supermarket chain currently stands at 27.8%, having made significant gains over the last year.
According to trade magazine The Grocer, the group’s Chief Commercial Officer, Ashwin Prasad, told delegates at the Tesco Business Update event hosted by IGD on Tuesday that it was focused on capitalising on its appeal to brands as the retailer most likely to bring about growth.
Declaring ‘To Grow Faster’ as the mission statement for Tesco, he told suppliers at the event that it could beat the offer of any of its rivals on value and quality, service and availability, and was the best vehicle for them to achieve gains.
Prasad added: “We want to grow with our suppliers and deliver against our priorities: ensuring we’re number one for value and quality; being their number one innovation partner; offering the best retail media platform; and delivering the best service and availability to our customers.
“We’re encouraging our suppliers to work with us and make us their primary partner to deliver growth.”
Speaking to The Grocer about the retailer’s strategy, Ged Futter, founder of The Retail Mind, said: “Tesco is confident it can return to a 30% share because it’s winning customers and knows what it’s doing is working.
“They don’t need to reinvent the wheel either. I think the main targets for Tesco’s share growth will be Asda and Morrisons. They are the easy targets because they’ve got more branded stuff.
“Aldi Price Match is all about own label, it isn’t about brands. That’s working, what they need to unlock is investment from the brands.”
NamNews Implications:
* ‘Focused on capitalising on its appeal to brands as the retailer most likely to bring about growth’
* i.e. likely to keep own label and brands at appropriate levels to optimise potential Retail Media revenues.
* Tesco priorities:
- Ensuring we’re number one for value and quality
- Being their number one innovation partner
- Offering the best retail media platform
- Delivering the best service and availability to our customers’
* i.e. Demonstrate how your brands fit with these priorities to optimise your brand opportunities.
* And as Ged Futter implies, your Tesco growth will be at the expense of Asda and Morrisons.
* BTW, worth keeping in mind that delegates at the IGD Tesco Business Update event had personal access to these insights two days ahead of non-delegates…?
Tesco IGDTescoBusinessUpdate
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