Tesco as a discount store?

Wiktor Miałkowski
Wiktor Miałkowski
29 October 2018

Nielsen shows that hypermarkets in Poland are still losing their market to discount stores and proximity supermarkets.

Seemingly logical Tesco is trying all their best to resemble the first ones. Nevertheless over the last few years, discounters have undergone a deep premiumisation of the appearance and offer, and Tesco has copied their solutions from 15-20 years ago.

tesco dyskontem-1

Absolute yellow dominance, POSM spartan materials, despite the large number of promotions, create the impression of a store in reconstruction or liquidation. Instead of bringing the image of the stores closer to Lidl and Biedronka, they rather refer to the appearance of the Leader Price chain, which as the first discount had to withdraw from Poland. Besides, can hypermarkets defend themselves by pretending to be discounts? In contrast, Carrefour, which has shops are similar to Tesco's, develops them in the direction of naturalness, ecology and quality. It strengthens its offer and allows to fight for the client. Of course, it can also be a typical tactic, focused on cutting all costs and struggling for survival until the purchase by the new owner - but is this style right?

TAGS: TradeMarketing, POSM, tesco