Tesco’s flagship store in the Czech Republic is in Veselska, a suburb of Prague. Built five years ago, the 120,000 sq ft store is the largest of Tesco’s 18 stores in the country and is seen very much as a test bed for new ideas on ranging, layout and format.
Perhaps the most noticeable difference between the Czech store and what you would find in the UK is the new customer kitchen, launched last month. Located to the rear of the store, it allows shoppers to wander in, watch food being prepared and taste new products. Tesco says it caters to the Czech interest in cooking and testing food before buying it.
Tesco also plans to use feedback on the tastings to determine which products will be listed in the store. In fact, customer research has been vital to Tesco as it hones its offer to the Czech market. Research into which product areas generate the highest sales underpins an innovative range and space-planning project, which began 18 months ago and could eventually lead to new planograms for every store in the country.
Tesco has already made a start on changes to the Veselska store in response to some of these findings. It has reduced the size of its non-food area by cutting the number of facings while retaining the number of lines. The department still occupies more than a third of the store, selling electrical goods, clothes and furniture. It has a dedicated seasonal area, which currently sports a full back-to-school offer, including stationery and school clothing. Non-food ordinarily commands 35% of total sales, although that proportion tends to increase during Christmas. The remainder comes from dry food (45%) and fresh food (20%).
Czech shoppers expect a lot of fresh food and the store meets this demand with a bakery, rotisserie and spacious deli. Products are delivered by third parties from the newly-opened fresh food distribution centre in Gyal. One of the latest items to hit the deli section is sushi, in response to the growing interest in international cuisine. Tesco has even installed fish tanks housing carp, used in a popular traditional Czech dish. In fact, fish tanks are now a common feature of most of Tesco’s Czech stores.
The store also boasts a new range of ready meals. Thanks to changing lifestyles and the emergence of a cash rich time poor consumer group, particularly in the cities, there has been an explosion of interest in convenience. The number of chilled convenience foods, including local dishes, is growing rapidly. As in all Czech stores, food and non-food areas are driven by strong promotions. Yellow and red banners and PoS everywhere proclaim ‘Acke’ (bargain).
Thanks to the 80,000 customers that pass through its doors every week, it delivers around £40m in annual sales.
Tesco is not just testing out new ideas in store - it is testing out new stores. The retailer has just opened its first 30,000 sq ft compact hypermarket at Melnik with a strong price-led, promotional offer focusing on locally-sourced products.
Because of the close-knit community in Melnik, Tesco says that supporting local producers is crucial. The multiple has built links with the mayor and a local charity and has even tailored its opening hours to run from 6am to midnight, to fit factory shifts. It has also developed ties with businesses to target workers by direct marketing.
The cut-price instore offers, reflecting Tesco’s policy throughout the Czech Republic, fit in with the local discounting culture. The store has a deliberate, no-frills appearance, sporting clear PoS highlighting the cheapest products, promotions and new lines.
Perhaps the most noticeable difference between the Czech store and what you would find in the UK is the new customer kitchen, launched last month. Located to the rear of the store, it allows shoppers to wander in, watch food being prepared and taste new products. Tesco says it caters to the Czech interest in cooking and testing food before buying it.
Tesco also plans to use feedback on the tastings to determine which products will be listed in the store. In fact, customer research has been vital to Tesco as it hones its offer to the Czech market. Research into which product areas generate the highest sales underpins an innovative range and space-planning project, which began 18 months ago and could eventually lead to new planograms for every store in the country.
Tesco has already made a start on changes to the Veselska store in response to some of these findings. It has reduced the size of its non-food area by cutting the number of facings while retaining the number of lines. The department still occupies more than a third of the store, selling electrical goods, clothes and furniture. It has a dedicated seasonal area, which currently sports a full back-to-school offer, including stationery and school clothing. Non-food ordinarily commands 35% of total sales, although that proportion tends to increase during Christmas. The remainder comes from dry food (45%) and fresh food (20%).
Czech shoppers expect a lot of fresh food and the store meets this demand with a bakery, rotisserie and spacious deli. Products are delivered by third parties from the newly-opened fresh food distribution centre in Gyal. One of the latest items to hit the deli section is sushi, in response to the growing interest in international cuisine. Tesco has even installed fish tanks housing carp, used in a popular traditional Czech dish. In fact, fish tanks are now a common feature of most of Tesco’s Czech stores.
The store also boasts a new range of ready meals. Thanks to changing lifestyles and the emergence of a cash rich time poor consumer group, particularly in the cities, there has been an explosion of interest in convenience. The number of chilled convenience foods, including local dishes, is growing rapidly. As in all Czech stores, food and non-food areas are driven by strong promotions. Yellow and red banners and PoS everywhere proclaim ‘Acke’ (bargain).
Thanks to the 80,000 customers that pass through its doors every week, it delivers around £40m in annual sales.
Tesco is not just testing out new ideas in store - it is testing out new stores. The retailer has just opened its first 30,000 sq ft compact hypermarket at Melnik with a strong price-led, promotional offer focusing on locally-sourced products.
Because of the close-knit community in Melnik, Tesco says that supporting local producers is crucial. The multiple has built links with the mayor and a local charity and has even tailored its opening hours to run from 6am to midnight, to fit factory shifts. It has also developed ties with businesses to target workers by direct marketing.
The cut-price instore offers, reflecting Tesco’s policy throughout the Czech Republic, fit in with the local discounting culture. The store has a deliberate, no-frills appearance, sporting clear PoS highlighting the cheapest products, promotions and new lines.
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