Tesco’s Format Change in Drive to Boost UK Performance

Tesco recent revamp of a Tesco Extra store in Watford and launch of its ‘Love Every Mouthful Campaign’ are key signs of Tesco Chief Executive Philip Clarke’s commitment to get the UK business back in growth. The investment in the UK is costing the group over £1bn and remodelling the Extra estate and focusing on improving its Fresh Food will be key to re-invigorating Tesco’s UK performance.

The new store concept brings together 18 months of format redevelopment with a food first approach, centrally located counters and a greater selection food-for-now and food-for-later solutions. It will also showcase Tesco’s latest retail innovations and mark the first time that its new food concepts–including Giraffe ( a further 9 in-store Giraffes restaurants are planned over the next 12 months), Harris + Hoole, Euphorium and The Bakery Project–have come together under one roof.

Tesco’s ‘Love Every Mouthful’ campaign, which was launched in August, is aimed at reviving its fresh food image, particularly in the wake of the horse meat scandal earlier in the year. Improving its fresh food offer is a key pillar of Clarke’s turnaround plan, significant investments have been in staffing levels and quality. Tesco is recruiting 20,000 new staff members over two years to improve the in-store experience.

Tesco’s renewed focus on securing its home market with the reinvention on its larger format stores and a strong focus on its food credentials is a step in the right direction, but with competition intensifying from the discounters and online, Tesco’s new initiatives will have to work harder to show shoppers that can deliver an improved shopping environment and convenient and fresh solutions for differing shopper missions.

Bord Bia London recently visited the new Tesco Extra store in Watford, and photographs of the visit accompany this article.

Source: BordBia – Tesco’s Format Change in Drive to Boost UK Performance