Darrell Edon

What is the biggest take out from Tesco's update today? Rollback isn't working. We all know it's not working but the Tesco numbers highlight just how much it isn't working. In April Tesco said they expected to spend over £400m on price in a highly competitive market, they now expect to spend less than half of this amount. Ken Murphy's expectation is that Christmas will be just as intensive as the first half of the year. Tesco's results contain a few interesting nuggets highlighting why they continue to dominate. Overall supplier satisfaction 88%, up +1ppt YoY, 1st in the Advantage Survey for the 10th year running. Are Tesco challenging? Of course, but Suppliers are seeing a return with increased volumes. Are their stores less cluttered most of their competitors, yes. Does this make it a better experience for the Customer? Of course. An improved price position against the market, notably on the products most frequently purchased by customers. Price activity by their competitors is having no impact on how Tesco's Customers see their price position. Continued range innovation with investments in distribution capacity and new AI capabilities. Over 470 new products launched, Finest sales up +16%, with over 300 new and improved products. Sainsbury's launched over 1300 new products in their last financial year, over 600 in Taste the Difference. Launching new products comes with risk, the likelihood of success is always low. Better to have less launches with a higher rate of success than a scattergun approach. With all the system chaos & churn of senior leaders the innovation coming out of Leeds has been severely lacking! Tesco are early adopters of technology & it would appear that AI is very high in their agenda. The use of AI is only going to increase. This year Tesco have made improvements to in-house tools which find the most efficient journey for every Tesco lorry and delivery van, removing around 100,000 miles per week. 5.2 million miles removed, that is some saving! Growth in advertisers using Tesco Media and Insight Platform; particularly significant growth for smaller advertisers. We know that all Retailers are on the Retail Media band wagon, some buyers are now targeted on it. But when overused it loses it's impact. There is a fine line that needs to be trodden to ensure that investment by any Supplier sees a return. Otherwise it just becomes wallpaper instore & is ignored by the Customer! Clubcard penetration remains high in all markets: UK 84% with over 24m Clubcard households in the UK. No other Retailer comes close, not just in the number of Customers but how it is used. Tesco are trialling use of Clubcard analytics to anticipate and remind customers when they may be running low on household products. The numbers from Tesco are impressive, they haven't had to invest what they expected due to weak competitors. Foot to the floor is what you can expect from them, absolutely no let up! #theretailmind #groceryretail #keepitsimple  

١٣٣

٥ تعليق

Marks and Spencer announces major food DC investment - Marks & Spencer has announced a landmark £340 million investment in its food supply chain – the largest in its history – with the multi-year investment funding the development of an automated NDC in Northamptonshire. https://lnkd.in/eXKCQhM6 #automation #logistics #warehouse #DC #investment

٤٦٦

١ تعليق واحد