Tesco data strategy 'paying off'

Tesco’s £1bn recovery plan – which puts Clubcard data at the heart of the operation – is gaining traction after industry figures show sales growth of 3.4%, suggesting it is now starting to close the gap on its rivals.
There had been claims that the strategy had had little effect when the retailer revealed its most recent figures in June, showing a small fall in like-for-like sales of 1.5%.
But analysts pointed out it had shown ‘steady progress’ by stemming the decline, and that its recovery strategy was beginning to deliver results.
According to the latest figures from Kantar Worldpanel, the top supermarkets all performed strongly, but Tesco continued to come under pressure, with Asda and Sainsbury’s showing growth of 6.2% and 4.6% respectively.
Of the ‘big four’, Morrisons put in the weakest performance, with a sales increase of just 1.8%.
Strongest growth continues to come from the ‘value’ end of the market, with own label lines such as the relaunched Tesco Everyday Value and Sainsbury’s Basics growing at 13%, while premium lines are falling 4% year-on-year.
Fraser McKevitt, retail analyst at Kantar Worldpanel, said: “It’s too early to attribute improved grocery sales to the Olympics, however, the increased market growth rate coincides with the opening week of London 2012 and the better weather in July.
“Shoppers might not yet notice it at the tills, but they are starting to benefit from lower grocery inflation, with prices now rising at 3.2% – the slowest rate for 18 months and a sign that things are starting to look up.”
Last week Tesco unveiled its vision for the future of retail shopping by opening up a virtual store at Gatwick Airport. Shoppers can now order goods on their way to or back from holiday by scanning images on their smartphones and arranging delivery for up to three weeks away.