Tesco has pledged to put an overhaul of the fresh produce aisle at the heart of its plan to boost shopper loyalty in the wake of disappointing first-quarter results.
The UK’s biggest retailer this week reported a 1.5 per cent fall in like-for-like sales for the first quarter. Total sales for the group were more encouraging, with a 2.2 per cent increase including fuel in the 13 weeks to 26 May.
Tony Hoggett, managing director of Tesco Superstores, said its developments in the fresh produce aisles were key to its future growth: “Nationwide we are now taking on greengrocer experts, trained in locality and service so produce is of the very best quality,” he said. “Our new ‘would I buy it?’ philosophy will allow staff to throw out fresh produce if it isn’t up to a high standard.
“Selling great fruit and vegetables isn’t just about great produce but about presentation, so nationwide we are enhancing the access and lighting of in-store fresh fruit and veg displays. Feedback from customers is our stores are not as warm and welcoming as they once were; we want to change that.”
The supermarket said UK consumers have started the year with a high degree of caution.
“Confidence isn’t getting any worse but it isn’t getting any better. The great hope would be that fuel prices are going to come down,” said chief executive Philip Clarke. “A tank of petrol is still £70 now and it was £45 two years ago, an amazing dent in household budgets.”
Tesco shocked investors earlier this year with its first profit warning in more than 20 years. But it insists its subsequent £1 billion investment, which has seen it revamp hundreds of stores, give some 145,000 staff specialist training, and the recruitment of nearly 5,000 new staff, is having a positive impact.
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