Tesco Update

Tesco's Christmas and New Year trading statement shows that group sales increased by 7.5% in constant currency [6.9% in actual exchange rates] in the six weeks to 9th January 2010. In the UK, online sales - in food and non-food - grew by some 20% in this period.

Tesco Q1

Tesco has just published its results for Q1 2010. Revenues increased by 9.7%, although excluding petrol, the increase was 12.6%. Much of this growth came from outside the UK - 11.4% at constant currency, but a whopping 20.1% using 'actual' exchange rates. The non-food side of the business 'resumed modest like-for-like growth', and this includes electricals.

Tesco 2008

Multichannel Tesco

The UK's largest grocer, Tesco, is planning to instal a number of Tesco Direct desks in its Tesco Metro stores, according to a report in Retail Week. It already has over 200 Tesco Direct desks in its larger stores. Tesco also has catalogue stands for its Autumn/Winter catalogues in several of its smaller Express convenience stores.

Tesco has four different store formats in the UK. Express Stores [up to 30,000 sq ft] carry up to 7,000 SKUs. Metro Stores [7,000 - 15,000 sq ft] are town and city centre based. Then there are Superstores [20,000 - 50,000 sq ft], and the Extra format [60,000 sq ft and above]. Tesco also has a trial format called Homeplus [35,000 - 50,000 sq ft]. These are dedicated to non-food lines, including clothing.

Dell's Retail Push

During the fourth quarter of 2007, Dell announced deals with five substantial retailers of desk tops and note books. On 22nd October it was Staples. On 27th November, it was Carrefour. On 6th December, it was Best Buy. On 13th December, it was DSGi. And on 21st December, Dell announced a deal with Tesco. Deals were announced earlier in 2007 with a number of other retailers, particularly in the Asia-Pacific region. Over the years, Dell has blown hot and cold with the channel, and anyone who can reach back to the mid-1990s will know that commitment to the channel has not been one of Dell's fortes in the past. Now, though, with HP securing and retaining the No.1 slot globally for the past year or so, Dell realises that retail channels are a necessary route to market if it is to gain market share in the fast-growth consumer segment.