Should Tesco break itself up?
The marvellously named Bruno Monteyne, who is an analyst at Bernstein Research, says that Dave Lewis should split the supermarket into three separate categories: a high-end 'Finest' store (which will go toe-to-toe with M&S, Waitrose and the like), the regular, trad. arr. Tesco shops, and a discount chain to take on Aldi and Lidl.
Monteyne thinks that this is the only way Tesco can stay relevant in the current climate. Tesco need to do something, that's for sure.
Monteyne is himself, a former Tesco executive, and he said: "Splitting themselves into different channels allows them to use different strategies with different customers."
"Rip out 20 per cent of the range, have cheaper shelving and cheaper products in the more deprived areas and give customers a better deal. In London, where people want someone behind the counter who knows the difference between a parma ham and a serrano ham, that requires more investment.”
"By Tesco promising to have the same prices in the most affluent areas as the poorest areas, it’s basically tied its hands behind its back by committing to an uneconomical model. Tesco could probably be cheaper than Aldi in some areas, but national pricing would force them to do the same in Chelsea as well and Chelsea wouldn't be successful."
What do you make of that? Eccentric ramblings of a lunatic? Sensible thinking from leftfield? Sod Tesco, and here's to them dying on their arse?