Its 2,800 stores have been criticised as cold and industrial with poor levels of service, while analysts said the UK business was seen as a cash cow to fund overseas expansion.
Mr Clarke has launched a comprehensive £1 billion plan to make the stores warmer and easier to shop in, with better ranges and more special offers.
Here are the six areas that will underpin his turnaround strategy:
:: Service and staff
Tesco will recruit 8,000 workers on to its shop floors this year, particularly in larger stores and fresh food departments, after being accused of reducing staff numbers in these areas. A recruitment drive in 200 stores led to a sales boost and will be copied group-wide in a £200 million investment.
:: Stores
Some 430 stores, or a quarter of its space, will be given a warmer look and feel, with better lighting and signage to make them more pleasant places to shop. Tesco's rapid expansion, which has given it a 30% share of the grocery market and led to complaints of "Tesco towns", will be slowed by 38% as it focuses less on big stores and more on its Express convenience stores.
:: Price and value
Tesco's £500 million Big Price Drop launched last year was branded a flop after it failed to impress shoppers, partly because it was funded by a reduction in Clubcard points. Tesco will revamp the scheme by offering more special offers in addition to permanently dropping the price on staple items. And it will give away more money-off coupons to Clubcard holders and at checkouts following successful recent trials.
:: Range and quality
It is rebranding its Value range as Everyday Value and has ditched the long-held blue and white branding. Tesco's standard ranges, which represent 40% of its UK food sales, will be "comprehensively upgraded" with 2,000 new lines added this year and its Finest label also set for an overhaul.
:: Online
The number of products available online has been doubled to 75,000 while its website has been relaunched as part of investment worth £150 million this financial year. Shoppers will be able to pick up the goods they order online through 770 click-and-collect points, while joint grocery and non-food collection services are also being trialled.
:: Brand and marketing
Tesco wants to improve the image of its brand, which some argue has been tainted in the UK by years of under-investment and will make more effort to understand what shoppers want.
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