Tesco has revealed there are plans in place to reduce the number of products it stocks on its shelves by roughly 30% in a bid to improve its financial situation having just announced record losses of £6.37 billion yesterday.
Dave Lewis, the company’s chief executive, admitted in an interview with The Times that Tesco will "will be taking ranges out of the business — ranges that aren’t selling because customers don’t want them."
This will leave Tesco's range standing at approximately 60,000 products, something that Lewis knows will affect several other businesses. "You don’t shed 30% of your range without having some impact on suppliers."
It remains to be seen how the drastic cut in products will affect the business, but it is noted that discount retailers such as Aldi have had great success despite providing only a limited range. Speaking to The Guardian, Steve Dresser of the retail consultancy Grocery Insight made the point that fewer options for consumers makes for a more efficient shopping experience.
“A customer likes to look at one tomato ketchup and know it’s of sufficient quality, a good price, and then purchase it. This is where the discounters have gained traction and, crucially in food retail, momentum."
© 2015 - Checkout Magazine by Niall Swan
