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Huge growth in non-food sales at Tesco

Tesco, Evesham, UK

Tesco, Evesham, UK

7th September 2005

Tesco's strategy to strengthen its non-food sales has been a huge success, with non-food sales in excess of £6 billion each year in the UK alone. Tesco sold 15 million books in 2004 alone.

Tesco market share of the UK nonfood sector is less than 7% and generates sales in non-food in excess of £6 billion each year in the UK alone. The UK's like-for-like non-food sales growth is currently running at around twice the rate of food.

Whilst all Tesco stores sell some non-food, it is Tesco’s ‘Superstore’ and ‘Extra’ formats that offer the biggest choice. These offer electricals, home entertainment, clothing, health and beauty, stationery, cookshop and soft furnishings, plus seasonal goods such as barbecues and garden furniture in the summer. The company has launched a highly successful range of own brand goods from microwaves to garden furniture.

There has been widespread success across non-food sales, but it has been its own brand clothes and its innovative approach to clothing retailing that has had the biggest impact on the retail market. High street clothing retailers have had to adjust their strategies and pricing policies in response to the overwhelming success of Tesco’s clothing brands.

In a relatively short period, Tesco has revolutionized retail within the UK and although its growth has not been without criticism, Tesco has brought incredible product value and convenience to its customers.

Tesco now has a team of over 100 people sourcing non-food products globally. Over £1 billion worth of non-food is sourced in this way and this figure is growing rapidly, in line with Tesco’s overseas expansion and increasing capability in non-food. Tesco is a innovative, well managed and focused business that will become an increasingly powerful global retailer.



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