Thousands of products set to disappear from Tesco shelves
The road to recovery is a long one, but Tesco is staying the course with a long term plan, the latest step on which is massive cull of products from its shelves.
Print1 July 2015
Tesco have had a rough time of it this past year or so, with profit warnings and the accounting scandal of last autumn that saw the retailers reputation take a hit among customers and suppliers alike. Tentative steps towards recovery have been made by CEO Dave Lewis though. His latest move, on the back of a slight improvement on results in the last quarter, is to remove almost 1/3 of Tesco’s 90,000 product lines from shelves in an attempt to secure better deals with fewer partners and drive prices down.
The Irish Examiner reports that suppliers who survive the cull will benefit from improved shelf space and higher sales, although the move would spell disaster for the brands that Tesco does give the chop to – the retailer still dominates market share in the UK and is neck-and-neck with its closest competitor Dunnes and SuperValu here in Ireland.
Despite this leading edge, Tesco’s profits have fallen in recent years with the arrival of discounters Lidl and Aldi, which keep their prices down by limiting product ranges. With new deals for Tesco’s suppliers as well as price cuts, Dave Lewis aims to boost sales volumes and retain Tesco’s position at the top of the grocery market.
Related Articles
EY Entrepreneur Of The Year 2024 finalists revealed →
Milish Bakery secures multi-million euro deal with M&S →
Powerscourt Distillery announces return of “Spirit of Wicklow” Awards →
Fans 0
Followers