Tesco is to greatly streamline its alcoholic drinks offering, according to a report in Off Licence News.
The decision follows advice offered to the retailer by the Boston Consulting Group (BCG), a global management consulting firm with a strong reputation for business strategy.
In trimming its range, Tesco is moulding itself to be closer in structure to the discounters.
A Tesco spokesperson explained the decision to The Grocer: "We have been working with BCG for some time on a number of things, and we are looking at range reviews. The review is ongoing, and no changes have yet been set.
"There is no specific change to the role of our buyers, but we have been saying we want to use front margin rather than back margin as the basis of our trading."
Many wine wholesalers and dealers in the UK believe that this will cause something of a tsunami in the market. The head of a leading wine firm said to Off Licence News, "There is going to be a huge fall-out as a result of this. I don't think the wine trade is ready for the colossal changes ahead. The fact is, all the grocers are looking at the same model and will probably do the same eventually. The discounters have shown that you don't have to have big ranges to keep consumers happy."
Another stated, "The days of wall-papering shelves with lots of brands which basically all do the same thing are gone. The grocers have a stated aim of thinning the shelves out, which is welcome by consumers.
"But it will be difficult for some companies. Because if you're in, then it's fine, but if you're out, you're going to feel it."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Peter Donnelly.
