The supermarket has exclusive UK distribution rights from brand owner The Cherokee Group, but other major retailers such as Carrefour hold licences for other countries.
Richard Hyman, chairman of analyst Verdict Retail, said that although Carrefour was among the contenders for Cherokee, with its estimated price tag of £200m, Tesco was still odds-on favourite.
“I’d be surprised if Tesco, having expressed its interest in the public domain, didn’t get Cherokee,” said Hyman. “The management are very single-minded and do not normally come off second best.” But he added: “If Carrefour offers more money than Tesco thinks it’s worth, it would let it go.”
Should Tesco fail in its bid for Cherokee, Hyman predicted it would develop a new clothing brand. “Tesco takes successful brands and produces own-label equivalents at very favourable economies. Cherokee has had a galvanising effect on the rest of its clothing range - it has made the difference between an OK offering and one with year-on-year sales growth of 28%.”
Some of the country’s most innovative retailers are coming together for the Going for Growth seminar in London on July 5. There will be speakers from Waitrose, Booths, Cook, BP, Budgens and Somerfield. The discounting boom will be explored by Poundland and 99p Stores. The seminar is organised by The Grocer
and details can be obtained from Elizabeth Brown on 01293 610255.
Labelling schemes to help consumers make healthier food choices may be extended to alcohol, according to the Food Standards Agency.
Speaking at a Leatherhead Food International conference, FSA director of consumer choice and dietary health, Gill Fine, said she “would not rule out” extending a scheme to alcohol.
The Grocer Top 50 retailer Smile Stores now has 100 c-stores in its chain following the addition of another five shops. Three of the stores are new-builds in Bath, Southampton and Gloucester and two are acquisitions in Cirencester and Western Supermare.
Most consumers want health and nutrition claims on food proved before products reach shelves. According to a survey of 1,000 adults by Which?, 98% said they thought all claims should be foolproof, while 62% said manufacturers should not be allowed to make a low-fat claim at all if the food is also high in sugar.
Sainsbury and Tesco are pushing a value message in new national media ads. Nielsen Media Research data reveals both chains increased their press ad spends in April compared with a year ago, with Tesco up 10% and Sainsbury up 3%.