• The Wall Street Journal reports that Tesco’s desire to expand aggressively in the nonfoods arena, which has resulted in the company having an 8.5 percent market share of the nonfood retail market, now is facing economic challenges because the recession has caused consumers to stop spending on anything except necessities.
According to the Journal, “The cutback in consumer spending saw Tesco record worse Christmas sales than its more food-focused peers. Reductions in nonessential purchases such as clothes and DVDs hit its sales figures. That trend is likely to continue when it publishes full-year results next month.”
This could explain why Tesco’s grocery market share has been in small but steady decline, the story suggests, because retailers with a more focused approach to groceries – such as William Morrison Supermarkets – are seeing strong growth as consumers respond to its marketing and merchandising efforts.
According to the Journal, “The cutback in consumer spending saw Tesco record worse Christmas sales than its more food-focused peers. Reductions in nonessential purchases such as clothes and DVDs hit its sales figures. That trend is likely to continue when it publishes full-year results next month.”
This could explain why Tesco’s grocery market share has been in small but steady decline, the story suggests, because retailers with a more focused approach to groceries – such as William Morrison Supermarkets – are seeing strong growth as consumers respond to its marketing and merchandising efforts.
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