Tesco's recently announced strategic decisions to reduce its SKU and store count aren't anything new to the editorial team here at ESM: The European Supermarket Magazine -- we suggested such measures as far back as last September.
In Issue 5 of 2014 ('New Tesco's Big Gamble'), we suggested a number of recommendations for new chief executive Dave Lewis, including 'reducing SKUs by 10-15 per cent. This would still allow Tesco to offer an adequate and varied product range.'
Last week, Tesco announced that it was hiring Boston Consulting Group to assist with range reviews, with a view to reducing ranges by as much as 30 per cent.
In addition, ESM suggested that Lewis look to close underperforming stores -- another measure that has come to pass, as Tesco announced the planned closure of 43 UK outlets.
Thirdly, we suggested that Tesco retain the services of Mike McNamara, its chief information officer, who has helped build Tesco into the 'best in class when it comes to e-commerce'. This week, however, the news came through that McNamara has departed Tesco HQ to join Target in the States. We feel that this will be a significant loss to Tesco's e-commerce operation.
Still, two out of three ain't bad!
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones.
