Tesco is widening its discounter range into impulse products such as waters, smoothies and crisps in the new year, in the first major extension of the tertiary branded range.
The 200 new products will hit shelves in January, five months after the range's September launch, and will also include new general grocery products to add to the likes of SunSip cola, Country Barn wheat biscuits and Daisy washing-up liquid.
The range extension is also likely to include confectionery, biscuits, soft drinks, juices, snacks and nuts. "The emphasis will be on impulse lines and, to a lesser extent, grocery," said a Tesco spokesman. "That is not to say all impulse lines will be represented - it will just have more of a focus [on impulse]."
Tesco would move the discounter products back into the first aisle with the launch of the range extension in order to highlight its price credentials, predicted Greg Lawless, an analyst at Blue Oar Securities.
"Tesco's sales growth has been put in the shade when compared with its UK peers, but the company has a strong promotional package in place and good operating standards," he said. "The Discount brands have moved back into the main fixtures, away from the first aisle, as this is now occupied by seasonal products, as one would expect at this time of year. This will change again in January."
The decision to broaden the range would balance the offer, said a Tesco spokesman. "Of the 300-plus originally launched, very few were impulse, so it will be more of a complete range in the new year," he said.
Corporate affairs director Lucy Neville-Rolfe recently said the products were already taking 5% of sales and 25% of people were buying either the Discount or the Market Value brands.
Sales growth for the third quarter was just 2% on a like-for-like basis, but Lawless said the discounter range was a long-term commitment for Tesco and despite the recent hit on sales, was likely to remain a key part of Tesco's strategy next year.
The 200 new products will hit shelves in January, five months after the range's September launch, and will also include new general grocery products to add to the likes of SunSip cola, Country Barn wheat biscuits and Daisy washing-up liquid.
The range extension is also likely to include confectionery, biscuits, soft drinks, juices, snacks and nuts. "The emphasis will be on impulse lines and, to a lesser extent, grocery," said a Tesco spokesman. "That is not to say all impulse lines will be represented - it will just have more of a focus [on impulse]."
Tesco would move the discounter products back into the first aisle with the launch of the range extension in order to highlight its price credentials, predicted Greg Lawless, an analyst at Blue Oar Securities.
"Tesco's sales growth has been put in the shade when compared with its UK peers, but the company has a strong promotional package in place and good operating standards," he said. "The Discount brands have moved back into the main fixtures, away from the first aisle, as this is now occupied by seasonal products, as one would expect at this time of year. This will change again in January."
The decision to broaden the range would balance the offer, said a Tesco spokesman. "Of the 300-plus originally launched, very few were impulse, so it will be more of a complete range in the new year," he said.
Corporate affairs director Lucy Neville-Rolfe recently said the products were already taking 5% of sales and 25% of people were buying either the Discount or the Market Value brands.
Sales growth for the third quarter was just 2% on a like-for-like basis, but Lawless said the discounter range was a long-term commitment for Tesco and despite the recent hit on sales, was likely to remain a key part of Tesco's strategy next year.
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