Wednesday, May 6, 2009

Is Tesco Going Sectarian?

I'd like to know who the marketing geniuses of Tesco are and if they really are familar with the term "brand loyalty"? If they honestly think that people in Ireland (North and South) will trade Barry's Tea for PG Tips, they have got to be kidding! Who wants to drink dishwater?!? In my humble opinion, Irish products are much better quality than British!

I wonder if they actually did the market research and got a focus group together? This just doesn't seem right to me. What are your opinions on this?

DOZENS OF grocery brands which are popular in the Republic will start disappearing from the shelves of Tesco stores from Tuesday as the retail giant launches a major restructuring of its stock.

Industry sources say many familiar brands will be removed from stores close to the Border and in at least one new store in Cork from next week as Tesco seeks to more closely mirror the product offerings and prices available in its British stores.

Up to 13 stores in Border counties as well as a large Tesco Extra outlet in Cork will initially be affected by the change aimed at combating the continued migration of shoppers from the Republic across the Border in search of better value.

Consumers in the Republic are considered more brand conscious than shoppers in other jurisdictions, but the economic downturn, coupled with a weakened sterling, has seen British chains such as Sainsburys and Asda operating in Border towns profit from a dramatic increase in cross-Border business.

When they travel North, consumers from south of the Border are willing to buy cheaper but less familiar products and Tesco is understood to be keen to stress-test this shifting brand loyalty.

Some established Irish brands will retain a presence on the shelves but many will see their prominence significantly downgraded as the retailer moves to wean shoppers off certain products. While the move will initially affect only a small number of stores, Tesco is understood to be keen to implement the changes across the State.

Camile O’Flanagan of Barry’s Tea confirmed that the range and amount of its products stocked by Tesco Ireland’s northeastern shops as well as one Tesco outlet in Cork will fall. She said some of its familiar brands would have significantly smaller displays while others would be dropped altogether. “We are a major player in the Irish tea market and it would be a concern for us if people could not get our products.”

In the affected branches, Tesco has adopted UK planograms – the layout plans illustrating how and where products should be displayed – so the stores will now replicate the layout and design of stores in Britain.

Tesco declined to comment but a source familiar with the retail giant’s operation confirmed it would be making “a significant announcement” on Tuesday.

He insisted it would be more focused on lower prices than range and denied it would negatively impact on products sourced from the Republic. -Irish Times

1 comment:

Leanne said...

That's why Mum goes to Asda:)

I want shipyard tea I can stand a spoon up in and PG Tips isn't cutting it.