14 Jan 2021
Posted in Retail
Tesco’s renewed focus on value provides base for stout Christmas trading, says GlobalData
Following today’s release of Tesco figures for Q3 and Christmas FY2020/21;
Thomas Brereton, Senior Retail Analyst at GlobalData, a leading data and analytics company, comments:
“Much as expected Tesco has delivered a set of strong results for its Q3 and Christmas trading period, with lockdown conditions in the UK supporting strong growth across food retail markets. While total group sales fell to £19.9bn from £21.0bn across the same period in 2019/20, this excludes the disposal of Tesco’s Asia business, and retail operations remained strong across the core UK and ROI retail arms. And, while Tesco’s strategic investment in non-retail UK food operations (i.e. Booker) has left it more exposed to the impact of COVID-19 than the likes of Sainsbury’s and ASDA, Tesco’s rapid expansion of its online delivery presence and focus on value has stood it in good stead throughout the trading period and indeed throughout 2020.
And Tesco appears well set to face the challenges ahead. Tesco’s commitment to delivering value has proven invaluable to shoppers, with Tesco stating that its value perception has greatly increased since launching its Aldi Price Match in March as it attempted to go toe-to-toe with the discounters and Aldi in particular. Furthermore, Tesco has firmly pushed its Clubcard on shoppers, enticing consumers to hand over their valuable data through its energetic thrust of Clubcard Prices. The Clubcard app now has nearly two million active users, providing Tesco with a comprehensive and dynamic view of how customers are shopping. With the macroeconomic hangover of COVID-19 anticipated to last until at least 2022, Tesco’s proposition gives it a strong foundation for future success, further solidified by a robust supply chain (and buying partnership with European giant Carrefour) that has allowed it to navigate difficulties arising from the last-minute Brexit deal.”