Tesco to speed up revamp of large stores – but future growth will come from convenience stores and online

24th February 2014

UK supermarket giant Tesco is to accelerate its store refreshment programme for larger branches, while increasing investment in developing new channels and cutting prices, as it jockeys for market position while UK retail market conditions improve.

However, the development of new space will focus on convenience stores and online sales, rather than large stores, with an overall reduction in planned new physical space. The company told investors in February that success would be about offering customers the most compelling offer across all channels, hinting to an end to the retail space race.

Tesco does plan to double the number of click and collect points it offers at stores and transport hubs to around 500, to meet growing demand. The retailer’s online operation made a £127m profit last year.

The retailer announced the strategic changes in a seminar hosted by group chief executive Philip Clarke, UK managing director Chris Bush, group multichannel director Robin Terrell and chief financial officer Laurie McIlwee.

Last year the company announced that its London convenience stores were being tailored to local community needs based on sales and Clubcard data.