In the UK, the Guardian reports that Tesco - for years suffering eroding market share because of aggressive posturing by discounters Aldi and Lidl - has decided that if you can’t beat them, join them.
Tesco, the story says, is “developing a separate brand that would match the German discounters on price in a bid to halt the constant drift of customers away to the cheaper rivals. The new chain would offer a far more limited range of products than the average Tesco store, at around 3,000 compared with the 25,000 different items often available in a Tesco Extra … The retailer is reported to have hired advisers from Boston Consulting Group to work on the plans. It has asked a number of key own-label suppliers to sign non-disclosure agreements before contributing to a new project.”
Tesco, the story says, is “developing a separate brand that would match the German discounters on price in a bid to halt the constant drift of customers away to the cheaper rivals. The new chain would offer a far more limited range of products than the average Tesco store, at around 3,000 compared with the 25,000 different items often available in a Tesco Extra … The retailer is reported to have hired advisers from Boston Consulting Group to work on the plans. It has asked a number of key own-label suppliers to sign non-disclosure agreements before contributing to a new project.”
- KC's View:
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I even have a name for the new chain - Fresh & Easy. After all, they own it and aren’t using it.
Or, they could just call it “WTF” and be honest about it. (“Where Tesco Functions.” Of course.)
I have no idea if this makes sense or not. It feels discursive and distracting, and if people know it is a Tesco store, it could undermine the core brand’s message and equity. It also feels a little desperate.
But I could be wrong about that.
