Predictably, most of the media attention surrounding the launch of Tesco’s Farms brands in March revolved around that great Red Herring (not a real producer name) of Fake Farms.
But for all those serious about wanting to see the recovery of the UK’s biggest retailer, the launch of the 70 new own-label products was always much more of a vital commercial issue.
They wanted to know if this was truly a sign of Tesco finally being back on the front foot after many months of lurching from one crisis to another, seemingly powerless to react to the threat posed by the likes of Aldi and Lidl.
Today’s 0.3% like-for-like UK sales rise, while not exactly setting the world on fire, is therefore still hugely significant.
It is vindication for Dave Lewis’s strategy and his expensive investment in Tesco’s own-label pricing, quality and simplicity.
Lewis’ statement that more than two thirds of customers have now bought into the brands shows that, crucially, they have passed the quality test, as well as getting Tesco much closer to the discounters on price.
Just pause to imagine what Tesco’s performance would have been like in this Q1 period without that investment and it gives you an idea of how perilous the road is ahead still, for not just Tesco but all the major supermarkets.
Deflation, a brutal battle on own label and the arrival of Amazon on the scene, despite Lewis’ best attempts to play that down today, are just three of the factors making it potentially rocky.
Another will be what role brands play in the Tesco turnaround. After the blood on the carpet of Project Reset, Tesco has said the next phase will be about innovation among suppliers, branded and own label.
But Tesco has continued for a second successive quarter to show it recognises the key challenges facing its business.
Spend money on giving the H+H coffee brand the huge shot of finance it needed to compete with the established players? No.
Invest in the fresh food offer, cut out confusing promotions and coupons? Yes.
So while some Tesco consumers may still be lost in deepest Somerset looking for Nightingale Farm, at least two thirds seem to be voting with their feet and returning to Tesco.
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