Apr 17, 2007

Tesco Shares Best Practices For Category

No doubt you already know about Tesco's announcement a while back about their expansion into the U.S. Needless to say the turnout for the above meeting delivered by Janet Smith of Tesco had a big turn out. She shared some interesting acts about Tesco.

-3rd largest retailer in U.K. behind WM/Asda and Carrfour.

-$80 billion year business

-2,672 stores

-Largest private employer in U.K. (350,000)

-Convenience stores are typically 10,000 sqft

-Express format is 2,500 sqft

-Offer financial services

-Was the first profitable retail in dotcom in the U.K.

-In the telcom business

-Has a U.K. catalog business



The Space / Range / Display Team

-Buyer buys items, SRD team does all of the category management

-Their goal is to leverage their scale while keeping the keeping the customer offerings local (aka store of the community).

-They think Wal-Mart does not do this very well.

-Believes they're better at store of the community because "store mgr can add local items to the assortment". I know WM does that here in the states and goes beyond that method for SOTC.

-They have a big focus on planogram compliance. Tesco has developed their own tool to audit stores. Each store is responsible for maintaining the accuracy of their fixture configuration in the database.

-New items are added to the range on a strict schedule. If a buyer wants to put a new item into distribution he is restricted to ordering the item when the next planogram is planned.

-The only JDA software they are using is ProSpace, ProFloor, IKB and Web Publisher.

-Working on automating POG creation.

-Their POG sizes are limited to the floorplan just like WM.

-Not interested in an out of box solution for assortment decisions. They are open to using them for a starting point.

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