Jan 29, 2019
Can a shift in shopping help Tesco beat the discounters?
Tesco will keep meat, fish and deli counters at 700 supermarkets but while some of them will be staffed full-time, others will only be manned on a "Flexible" basis. "The market is challenging and we need to continually adapt to remain competitive and respond to how customers want to shop," says Jason Tarry, chief executive of Tesco UK & Ireland. While both brands are still relative tiddlers compared to Tesco in terms of market share - Tesco commands 27.8% of the UK grocery market, Aldi has 7.4% and Lidl has 5.4% - their presence has rattled the supermarket giant enough for it to recently introduce its own discount chain called Jack's. By following suit in Tesco stores, Tesco will reduce operating costs which will presumably mean that savings can be passed on to shoppers. Mr Jones, who used to work at Tesco as a buyer, says: "If Tesco starts to strip out the things that make them different to Aldi and Lidl, all that is going to happen is that people are going to go to the place that's the cheapest."
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