Friday, May 22, 2009

Tesco continues to struggle in a booming niche of Grocerants here in the USA! Realism is reflected in the customer counts and continued week sales numbers. Using the economy as the focus is an overly simple excuse and justification for missing the mark. The food price value equilibrium is resetting; however that does not mean that service or quality can be void within the offering. Tesco seems to be devaluing the EQ and focusing on the IQ. Since 2005 clear indicators show a growth in the ready to eat ready to heat niche i.e. the Grocerant niche hear in the US. They have consistently been asking the wrong questions of their consumers. What are important the changing consumer habits particularly: HOW THEY EAT, WHEN THEY EAT, and WHY THEY EAT. Most notable is the change in consumer vision and role of food: including social eating, eating economical, environmental eating and eating for personal benefit! It’s time for them to refocus on the American consumer and then they will win.

Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche.

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