Should Tesco break itself up?

26 August 2014

tesco bag The incoming chief exec at Tesco is being shouted at by a top industry analyst who reckons the supermarket needs to break itself into pieces so they can fend off the competition.

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?

TOPICS:   High Street News   Supermarket   Economy


  • Soronery
    I'll have option three please Bob.
  • jim
    yeah for the "benefit" of their customers (me) they now take a picture of your car when you park in tescos slough. then you need to get that vaildated or else they automatically send a bill to your house. ffs i just want to get out of tescos. not queue up to use some new ticket machine. thats my tesco rant
  • You w.
    I've got an idea. It could save billions in refits. Just put the bloody prices down.
  • sarcymark
    "who knows the difference between a parma ham and a serrano ham" and horse meat

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