The Tesco annual general meeting takes place today in the Queen Elizabeth II Conference Centre. The quarterly figures published by Tesco a few weeks ago were very disappointing. Sales have dropped, prices are being cut, and the company seems to be a quite a distance from turning things around. Even though all motions (including those concerning remuneration) are expected to be passed today, CEO Philip Clarke is likely to pose questions on whether Tesco’s strategy of competing solely on price is the right one. Under Clarke, the company has focused on competing with rivals on price, which, according to results in recent months, appears to have been unsuccessful. Unlike more successful supermarkets over recent years, such as Aldi and Waitrose, Tesco has not emphasised or communicated successfully enough how it differs from rival supermarkets. For instance, Aldi has offered alternatives to branded products at far lower prices and emphasised their quality, while Waitrose has stayed relevant on price but offered customers fresher, more local produce. Tesco, meanwhile, has simply slashed prices and placed greater emphasis on advertising its deals. © 2014 European Supermarket Magazine by Peter Donnelly
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