Sales Growth At British Supermarkets Slows
A new report issued by market research firm Kantar Worldpanel suggests that growth in sales at leading British supermarket chains slowed down to their lowest level in nearly two years.
The pace of growth in the market slowed to 5 per cent during the quarter ending February 21st, compared with 5.2 per cent in the preceding quarter.
A spokesperson for the research firm says the slow down in growth could be as a result of price cuts and price wars undertaken by many retailers. Some analysts suggests however that customer loyalty may be declining as a result of the economic downturn.
Asda was the leading beneficiary in February, after having seen declines in January. The retailer engaged in an aggressive marketing campaign which produced sales growth of 3.3 per cent during February compared with 2,1 per cent in January.
Despite the increase, Asda’s market share has fallen to 17 per cent from 17.2 per cent as perennial rival Tesco gained at its expense, increasing its market share by 0.3 per cent to 30.4 per cent of the total market after aggressively cutting its prices.
Some analysts have expressed concern at the performance of Sainsbury’s, whom many believe lags the traditional market leaders Tesco and Asda.
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Tesco Starts Selling World’s Sweetest Tomato
Supermarket chain Tesco is stocking a new variety of tomato, which it says tastes as sweet as a peach.
The new variety, known as Sugardrop was developed by the retail giant to cater to sweet toothed customers and indeed anyone who finds that taste of ordinary tomatoes to sharp for their liking, in particular children.
Tesco describes the new variety as the sweetest tomato ever, The Spanish grown Sugardrop is in fact a hybrid of two different varieties of tomatoes, containing approximately three times the amount of natural sugar as regular tomatoes as well as half the daily recommended dose of vitamin C.
A Tesco spokesperson said that the process of creating the new variety required two years of cross breeding amongst 3,000 varieties.
“A few years ago we sat down with our suppliers and asked them to find us a high quality tomato that would appeal to gourmets with a sweet tooth,” she said.
“It was the beginning of major research that involved our growers contacting all the major seed houses in the world in order to find varieties that they could cross pollinate to find a tomato with higher than normal sugar levels.”
“The result is the Sugardrop which is the sweetest tomato there has ever been and now this week UK shoppers will be the first to try it.”
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Tesco Doubles Polish Food Product Range
UK retailer Tesco has doubled its Polish food product range from 119 products to 211, as the supermarket responds to increasing demand. The increase in product range marks the first rise in sales since the products were first stocked in September 2006.
A probable influx of Polish immigrants into the UK has resulted in Polish food sales rising by 15 per cent from a year earlier. The supermarket giant had initially cut back on its Polish product range, after witnessing a 23 per cent annual decline in demand.
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Tesco Extends Double Points Rewards For Clubcard Members
Tesco says it will extend its double point’s scheme until the end of summer, allowing Tesco Clubcard members to continue earning double points from all in store and online purchases.
Tesco’s advertising campaign uses the catch phrase “Double points extended until summer 2010.” And the retailer says it may even continue the promotion beyond the end of summer.
A Tesco spokesperson says the retailer was still considering how long it will run the promotion and so far has not announced the specific end date for the scheme.
“The reason we are running the current adverts is that, from research, customers saw this as a temporary scheme so we want to assure them it will run for at least a few months longer.” the spokes-person said.
Last August Tesco introduced double bonus points under which members of the Clubcard scheme earned two reward points for every £1 spent instead of the single point they usually receive for the same spend. Points can also be exchanged for Tesco Reward tokens.
Last week Tesco celebrated the 15th anniversary of its loyalty scheme by announcing that more than 14 million UK customers have received £120 million worth of rewards.
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Tesco Chief Blasts Government Proposal To Create Supermarket Ombudsman
Tesco chief executive, Sir Terry Leahy has slammed the government’s plans to introduce a supermarket ombudsman.
Last month, the government announced its intention to create an ombudsman that would have oversight of grocery retailer’s dealings with their suppliers. The measure was proposed after a long investigation into the industry by the UK’s retail regulator, the Competition Commission.
The ombudsman has been billed to ensure “the grocery supply market continues to work in the long-term best interest of consumers”.
The ombudsman would also seek to enforce a code of practice for grocery supplies, which came into effect at the start of this month.
The Tesco chief however blasted the proposal, saying an ombudsman would have a negative impact on shoppers, because it would seek to protect the interest of suppliers rather than consumers.
Speaking to the Financial Times, Sir Leahy said:”I’m not in favour of an ombudsman. Everyone knows supermarkets are one of the most competitive industries around. That competition puts power in the hands of the consumer. In a free society, why would you want an ombudsman if there are no problems now as far as consumers are concerned? An ombudsman would be there to protect suppliers but should be there to protect consumers.”
He added that Tesco enjoyed a very good relationship with its suppliers, which were “unlikely to be helped by bureaucratic intervention”.
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Tesco Forces Customer To Leave For Carrying Daughter On Shoulders
The UK’s largest retailer Tesco has been in the headlines of late, after bizarre reports emerged that it had first banned customers from shopping in their pyjama’s and then carded a customer for trying to buy a 51p quiche. The retailer has hit the news again after banning a shopper from one its stores for carrying his daughter on his shoulders.
Cambridge shopper Mark Dunkley found himself accosted by a security guard after entering a Tesco Extra store carrying his six year old daughter Natalie on his shoulders.
Mr. Dunley a 45 year old taxi driver was issued an ultimatum by the security guard to either put his daughter down, or leave the store. The security guard cited health and safety concerns as the reason for the demand, which Mr. Dunkley refused to comply with, taking his daughter to Iceland instead.
He said: ‘I couldn’t believe it. It’s ridiculous. I think she was actually safer on my shoulders rather than running the risk of being hit by a trolley. This sort of pettiness gives health and safety a bad name.”
He added that Tesco had “lost a customer for life”.
A Tesco spokeswoman urged Mr Dunkley to return to the store and talk to the manager about his concerns.
She added: “We take the safety of our staff and customers very seriously. Each store can make these decisions on an individual basis. We have no blanket policy on this issue.”
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Tesco Cards Shopper For Trying To Buy Quiche
A Coventry shopper was left shocked when she found that a Tesco checkout assistant asked to her to provide some form of identification after trying to buy a slice of quiche.
The assistant, who is based at the Tesco store in Cannon Park, then refused to allow the stunned shopper to purchase a slice of cheese and onion tart, until identification was produced that proved she was over 21.
24 year old Christine Cuddihy then spent several minutes arguing with the checkout assistant and ultimately produced her driving licence, just so that she could buy the item, which cost 51 pence.
Miss Cuddihy said: “The girl told me, ‘You don’t look over 21. I need to see some proof of age.”
”I told her I was certain the proof of age laws do not apply to quiche but she just said ‘We have to be really strict now and this applies to quiche bought over the counter’.”
”At first I thought she was joking but her face was deadly serious. I didn’t quite know what to say. It was very embarrassing, what on earth is dangerous about a slice of quiche ?”
“I was so insulted they thought I could not be trusted with a harmless snack. I was really embarrassed and just wanted to get out of the shop.”
Miss Cuddihy, from nearby Leamington Spa, added: “It was rush hour and there was a queue forming behind so I just showed her my driving licence and rushed out. I was so hungry that I didn’t even bother kicking up a fuss or complaining to the manager. I just wanted to eat my quiche .
“The irony is I’ve bought alcohol from the same store dozens of times without being asked for ID. The whole thing is ridiculous.”
A spokesperson for the UK’s largest retailer offered an apology and added that shoppers were not required to provide proof of age when attempting to buy quiche.
The spokesman said: “We’re at a loss to say what happened here. We couldn’t find the staff member who asked for the ID.”
“Age-related prompts at till are set centrally and there obviously isn’t one on quiche .”
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Tesco Store Bans Shoppers Wearing Pyjamas
A Tesco store in Cardiff, has banned its customers from entering the supermarket and doing their shopping either in pyjamas or barefoot.
The Tesco Extra store in St Mellons has implemented a dress code, and put up notices at the entrance, as it seeks to prevent customers from doing their shopping wearing nightwear, which the retailers says makes other customers feel a tad bit uncomfortable.
The sign reads: “To avoid causing offence or embarrassment to others we ask that our customers are appropriately dressed when visiting our store (footwear must be worn at all times and no nightwear is permitted).”
The store says it felt it was compelled to take action, after experiencing an increasing number of shoppers, and in particular younger ladies, showing up to the store to do their shopping whilst wearing dressing gowns and slippers.
A Tesco spokesman said: “We’re not a nightclub with a strict dress code, and jeans and trainers are of course more than welcome.”
“We do, however, request that customers do not shop in their PJs or nightgowns. This is to avoid causing offence or embarrassment to others.”
A number of the store’s customers welcomed the decision, with one customer quoted as saying shoppers who failed to bother wearing adequate clothing “could all do with a kick up the backside”.
adding: “I’m fed up with them. When I spoke to one girl about the fact she was barefoot in a shop with food in it, she swore at me.”
Another customer however became the first victim of the ban, and was escorted out of the store for wearing pyjamas and said “If you’re allowed to wear jogging bottoms, why aren’t you allowed to wear pyjamas in there, that’s what I don’t understand. It is ridiculous and stupid. I go in other shops in my pyjamas and they don’t say anything.”
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UK Supermarkets Improve Their Customer Satisfaction Rankings
According to a new survey of customer service, UK supermarkets provide a higher level compared with their non-food retailing peers.
In the most recent UK Customer Service Index, the UK’s supermarket chains received an average score of 80 out of 100 for their customer service in a study which polled some 26,000 shoppers.
The top retailer which provided consumer satisfaction in the index was Waitrose who scored an average of 86, and was closely followed by Marks And Spencer who scored 85 points.
Asda came in third in the rankings, scoring 81 points, and was followed by Sainsbury’s and Iceland. The UK’s largest retailer Tesco scored 79 out of 100.
Bottom of the supermarket customer service list was the Co-op with a score of 75.
The top non-food retailer in the UK John Lewis was John Lewis and as a category non food retailers managed an average score of 79 points.
The results of the survey show that the retail sector in general has managed an improvement of four points during the last two years, and now top the industry consumer satisfaction rankings ahead of tourism and consumer services.
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Tesco To Trial Buy One Get One Free Later Program
As part of its drive to become more environmentally friendly, and cut down on food wastage Tesco is launching a two week trial of a “Buy One Get One Free Later” program.
The deal is applicable for four fruit and vegetable items including lettuce, salad, pineapple and melon.
Customers will now have the option of either collecting their second free item, on the same day of purchase or the following week, using a voucher will be issued during the checkout process.
The new program is part of a wider initiative by the retailer to offer its customers a large variety of low carbon choices, and convert the company into a zero carbon business by 2050.
Lucy Neville-Rolfe, Tesco’s executive director, said: “Customers really like our BOGOF deals but feedback shows smaller households sometimes can’t use the free product before its use by date.”
“Now we’re giving customers the flexibility to take advantage of the great value offer by claiming their free product the following week instead.”
“As well as giving our customers a flexible new offer, we’re helping them to cut food waste.”
“Last year, Tesco pledged not to send any waste to landfill and customers tell us they want to do their bit too.”
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