Sir; Tesco continues to make bold moves with a £2bn+ profit and a strategy to create 25,000 jobs worldwide, with 11,000 in the UK, through an aggressive store expansion programme.
But can Tesco maintain its prosperous position and grow its presence in sectors that are not grocery related?
At the start of the year, Tesco announced a plan to begin opening stores specifically offering non-food products, a strategy that fits in with its aim of growing market share outside the traditional fmcg sector.
An initial store concept of this kind performing well could lead to anything from 200 to 350 Tesco stores of this type within the next few years.
With opportunities for large supermarkets limited by difficulties with planning permission, Tesco would see general merchandise as a way of increasing UK market share.
The Tesco announcement follows the opening of Asda Living in Walsall and Altrincham. There has been speculation that both Tesco and Asda have had their sights set on acquiring non-food retailer Matalan.
Tesco and Asda have laid to rest this speculation as they strike out alone into the general merchandise arena rather than acquiring an existing player.
Both have strong positions in the market and it would make sense to develop and strengthen their own brands. Which other retailers offer as broad a customer appeal as our trusted supermarkets?
If such a bold move is taken by Tesco, the market will evolve to make room for its new stores, much to the detriment of other non-food retailers.