Tesco to launch non-grocery stores

mike65

Look out everyone, Tesco are planning to open up a new front in the retail wars as they move into the non-food business big time taking on the likes of Dixons, Currys, PC World, Woolworths etc with dedicated non-grocery stores.

http://www.timesonline.co.uk/newspaper/0,,2769-1441929,00.html

Tesco targets rivals with new non-food store

Richard Fletcher


TESCO, Britain’s biggest supermarket group, is to embark on a new strategy of opening stores that do not sell food — a move that will strike fear into the hearts of the country’s largest retailers.

Tesco is expected to open the first trial store — selling a wide range of products, including clothes, electrical goods, CDs and DVDs — within months.

If successful, the format is likely to be introduced across the country.

Now that the secret scheme has been revealed, immense pressure is likely to be put on a number of retailers, includ- ing Boots, Woolworths and Dixons.

Tim Mason, Tesco’s marketing director, confirmed the retailer’s plans. “It is too big an opportunity to ignore,” he said. “Having looked at it, we will now do a trial.”

Such a move will be a blow to high-street retailers, many of which are still recovering from dire Christmas trading — described by the British Retail Consortium as the worst in a decade.

Richard Hyman, chairman of Verdict Research, warned that the new format would only increase Tesco’s dominance of Britain’s retail market.

“The revelation that Tesco is planning to open stand-alone non-food stores will send shockwaves through the retail sector,” he said.

And if its happening in Britain this year it'll be here next year...

Mike.

Shrimp

yeah.. was watching a programme the other day on the BBC, there was a bit on it about tesco opening a clothing section.. :rolleyes: I'd say it'd be like dunnes, or maybe M&S.. but not as good?

Imposter

I don't know what the laws are in Britain but to do so in Ireland would be a way of getting around the size restriction on stores. Most big supermarkets over here in Austria sell pretty much everything (food, drink, electrics, cds/dvds/games, clothes, toys and sports equip).

Would they be allowed to open it beside an existing tesco food store though?

BuffyBot

Shrimp wrote:

yeah.. was watching a programme the other day on the BBC, there was a bit on it about tesco opening a clothing section.. :rolleyes: I'd say it'd be like dunnes, or maybe M&S.. but not as good?

Many UK Tesco stores (and I suspect the Tesco Extra in Clare Hall might do this too) already sell clothing - much of it their own "Cherokee" brand. The floor space dedicated to is normally less in percentage terms than Dunnes allocate to clothing/homewares etc in their stores though. Clothing and non-food won't be a new area for Tesco

However, when I lived in the UK my local ASDA had more floor space dedicated to non-grocery items that it did to food. It was only a matter of time before one of the big chains decided to try a non-food retailing store.

A Dub in Glasgo

Tesco already sell almost everything beside their food stuff here in Glasgow. My favourite is still ASDA though.

The likes of Dixons are leaving the high street to concentrate on out of town shops anyway.

Tiriel

yeah. as mentioned above it will have more success in Ireland now due to the recent change in legislation to accommodate retail units such as IKEA.. as it is many Tesco premises are already sneakily cutting corners on the size of their units.. ie they are having the required floor space for grocery etc. but then have extra for storage and private use. Therefore a lot of Tesco's technically have the space.. it would just mean a little (or a lot fair enough) restructuring..

A Dub in Glasgo

I thought the restrictions still apply unless the area is a designated regeneration area. there are not too many of them.

Tiriel

I thought the restrictions still apply unless the area is a designated regeneration area. there are not too many of them.

yeah, but often that's how things start off.. imo.. and then in a few years time general increases begin to pop up.. I dunno..
though designated regeneration areas may be few now.. I wouldn't be surprised if it became a more popular zoning category in the next few development plans.

JackieChan

I'm not sure if this is related but I read at the weekend that Tesco had bought the Golden Island shopping centre in Athlone.
This consists of 44 shops (not sure if 6 screen cinema is included in sale).
I just happened to be there at the weekend its not a bad set up.
There is an argos,boots,easons and many other well known stores there.

I'm not sure why Tesco want to buy it though.

jesus_thats_gre

Tesco already operate quite a few Non Food only stores in the Republic anyway...

jesus_thats_gre

Tesco have also seemingly bought the Dundalk Shopping Centre.. There is a massive Shopping Centre developement going on near the centre of Dundalk. Tesco are building a brand new store right beisde this shopping centre and then Lidl are building a massive store accross the road.. I think the overall plan is to knock down the Dundalk Shopping Centre etc...

So the lucky people of Dundalk will have 3 brand new, competing supermarkets side by side... Only the consumer can benefit from something like this..