Every Little Helps but is it time for big change at Tesco?
Every Little Helps...but is it time for big change at Tesco.
Today Britain's biggest supermarket chain is expected to announce its first profit fall in almost twenty years. If those predictions become reality, it will send a shockwave through Tesco.
What will hurt it is that the drop comes after a massive overhaul. Its been increasing staff, refreshing ranges and revamping stores. A billion pounds has been spent, thousands of staff hired and big management changes.
It has been improving its "look and feel" with warmer colours, better lighting and signage, but does any of that really matter to cash strapped customers?
Many shoppers are showing only one thing matters in these tough times - price. Tesco's so called "big price drop" was called a "big price flop" by some retailing experts.
Meanwhile on Monday Aldi, which is seen as a "discounter", reported pre-tax profit of £57.8m with turnover up nearly 30% to £2.76bn. It seems that middle class shoppers are increasingly willing to migrate to stores perceived to be cheaper.
Tesco itself has invested heavily in its own price discounts. Market researchers Kantar WorldPanel says that more than 40% of groceries are bought on special offer, so regardless of store revamps, this seems to be the big retail battleground. What should worry shoppers is that there are signs that big rises in world food prices are ahead - we have only been shielded from them by supermarket price wars.
Big change is coming no matter what Tesco plans: shoppers' increasing hunger for discounts: more shopping online and by smart phone: global economic turbulence.
As it reports its latest financial results tomorrow, people may want to know whether Tesco is changing enough to keep pace. After all - what most shoppers want is more change...in their pockets.