Tesco chief Sir Terry Leahy has hinted that Britain’s number one retailer is still looking for new markets in a bid to stretch its giant turnover even further.
The chain, which according to recent figures now accounts for £8 out of every £100 spent in Britain, has already scored noticeable successes outside its grocery heartland, including in banking and insurance.
However, Sir Terry has given the clearest indication yet that there is much more to come from the brand.
Delivering the Marketing Society’s Annual Lecture in London this week, Sir Terry told an audience of key industry figures that Tesco still harboured plans to extend its brand into new areas, but that it would have to proceed cautiously.
“Just because the Tesco brand has travelled to one area does
not mean it will go into others. For example, you would have thought that banking would not be a success and that catering would be, but we have been far less successful in that area.”
Sir Terry also insisted the chain was not resting on its laurels with its core business. He said: “Customers judge you every day and if you fail to serve them then they will punish you and Tesco is included in that. Size is no protection.”
He said that talking to staff on the shop floor would continue to be a major part of Tesco’s gameplan in meeting customers’ needs and added that becoming a global business remained a key plan but that it would be “many, many years before we see a truly international retail community”.
Turning to the debate on obesity in the UK, Sir Terry pointed to Tesco’s much-publicised promise to introduce a traffic light system of labels to indicate the health benefits of different foods.
But he added: “I personally believe it has to still be down to individual choice.”
Simon Mowbray
The chain, which according to recent figures now accounts for £8 out of every £100 spent in Britain, has already scored noticeable successes outside its grocery heartland, including in banking and insurance.
However, Sir Terry has given the clearest indication yet that there is much more to come from the brand.
Delivering the Marketing Society’s Annual Lecture in London this week, Sir Terry told an audience of key industry figures that Tesco still harboured plans to extend its brand into new areas, but that it would have to proceed cautiously.
“Just because the Tesco brand has travelled to one area does
not mean it will go into others. For example, you would have thought that banking would not be a success and that catering would be, but we have been far less successful in that area.”
Sir Terry also insisted the chain was not resting on its laurels with its core business. He said: “Customers judge you every day and if you fail to serve them then they will punish you and Tesco is included in that. Size is no protection.”
He said that talking to staff on the shop floor would continue to be a major part of Tesco’s gameplan in meeting customers’ needs and added that becoming a global business remained a key plan but that it would be “many, many years before we see a truly international retail community”.
Turning to the debate on obesity in the UK, Sir Terry pointed to Tesco’s much-publicised promise to introduce a traffic light system of labels to indicate the health benefits of different foods.
But he added: “I personally believe it has to still be down to individual choice.”
Simon Mowbray
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