Tesco fuelling growth
16 October 2017
COMING UP
Now: Tesco - Fuelling growth
Soon: What about Wilko?
Later: M&S - Did the lack of a sale impact food?
A brief email too on Tesco this morning (store later) as they launch their latest 'weekly helps' campaign which is running for three (3) weeks this time.
A fuel saving promotion, often dismissed by other retailers as a sign of a struggling retailer - Tesco are pushing on with 10p a litre saving off a £60 shop. It's the longest I can remember any retailer running such a deal certainly.
For anyone to dismiss Tesco are running a gimmick here would be short sighted. If we consider the bigger picture, it becomes a bit clearer.
1) Discounters do not have petrol stations, so if you're filling up as a customer then you may well visit a supermarket to do so. Morrisons identify this reason alongside their Cafe as another differentiator from discount too.
2) We are reaching a key 3 weeks in the trade planning calendar too, Christmas run in has started with the aisles filling up with various Confectionery items, plus we have Halloween then bonfire night inside a week that offer trade up opportunity.
3) Tesco, 3 years in to the Lewis plan are now on a good, solid footing. Tonnes of work has gone in to assortment, price points are incredibly strong and they're pushing back extensively vs. discount with 'brands' but also on weekly helps and other wider deals too.
We were always told at Sainsbury's that there'd be no real concerted push on vouchers / press until the stores were sorted, and Sainsbury's were 'proud' (or perhaps, confident!) that customers would be satisfied if they returned / were new to Sainsbury's.
It's a big push from Tesco and with a wider Toy sale also running given the Christmas run in, it's looking like they're targeting Argos / Sainsbury's with this particular strategy alongside other competitors too.
There is a geographical overlap in the south for Tesco and Sainsbury's, especially given the Tesco estate and their reach. If a customer is tempted with Argos, then they may well now have to visit a Sainsbury's to get to one.
However with Toy sales, 10p off a litre on £60 and various offers alongside a good spread of low prices too. Tesco represent a compelling proposition, far more than they have in recent times.
Another intriguing element?
The various deal sites around the internet have the Sainsbury's Toy sale kicking off this week too.....
From the Grocery Insight newsletter archive, first sent to subscribers on 16 October 2017. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.