Archivo de la etiqueta: tesco

Meal deals: selling solutions no stuff

“Our homes may be full of cooking books but we’re nation spending less&Less time in the kitchen” this affirmation from Kantar Worldpanel make think me about my fancy colorful books from Jaime Oliver in kitchen…

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32 minutes is the average of how long we spend cooking the main evening meal.

From “15 minutes” with Jamie Oliver TV program to the growth of “Tesco Finest” ready to cook/eat and “Taste-the-difference” (Sainsbury’s) we have evident changes on the shopping bag for the dinner.

So how the retailers are approaching these changes? They’re selling solutions, they’re becoming the Ikea of the food!

“10£ dinner for two” in Marks&Spencer is a good example as how a retailer can take advantage of a lack of time to cook to upsell products per trip. The meals deals are 1/3 of the revenue in the retailer.

Tesco Finest is another example of the approach to make the preparation of the dinner as fancy and ready as it’s possible.

The discounters and convenience stores are the only faces growing this year, one of the reasons is the change of the habits. I will focus on the convenience store, where we go to buy something fast for dinner.  They have a really good opportunity to grow in the mid-week evening meals. Must probably they can benefit for a switching from the main fast food chains. The clearly response from the retailers is new convenience store: as Morrison has opened 100 M local stores and Tesco 150 Tesco Express.

This open a huge spectrum of possibilities to cross categories in the meal deals to create more occasions to eat some products, for example yoghurt as a dessert if you add 1£ more… give me solution if I haven’t planned a dessert.

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What’s gone wrong with Tesco?

I was pretty concerned by Tesco loss of market share. My first thought was: What’s gone wrong with Tesco?

But Tesco is not having a “bad” performance, they’re growing, but behind the market. The grocery market is growing 3.2% and Tesco 2.1%. Sainsbury’s and the discounters are bringing the growth to the market. So good enough is not enough in the competitive market of the grocery in UK.

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Aldi and Lidl present a double digit growth thanks to the change in the shopper habits that starting to consider the discounters as a place for the weekly shopping. I would like to have this growth without the impact of the sales in the new supermarkets that they’ve opened last year.

The other winner is Sainsbury’s, which has achieved 0.4% market share more than the PY. Thanks to the Paralympics sponsorship, Brand Match and own-label investment.

Tesco have to react very fast, they might invest in the two fastest growing grocery channels: online and convenience. But for now they’re promoting a very similar concept to Carrefour Planet in the rest of Europe. The new Tesco in Watford is the jewel for Tesco’s UK operations. It would be great if they can apply some aspects around the full country as Chirs Bush has noted. They’re having a very good engagement with the customers, please check #watfood in Twitter.