The CEO of Tesco’s UK division has said that how consumers define value is changing and that retailers cannot only afford to focus on offering products at the lowest prices.
The retailer has identified that consumers want to be more self sufficient, value community more and are demanding more on information. He also highlighed how consumers are becoming increasingly interested in the provenance of products.
Go deeper with GlobalData
Despite entering a price war with Asda earlier this month, Tesco UK CEO Richard Brasher said today (16 March) that, with consumers changing how they perceive value, Tesco was not in a “race to the bottom” and that “not just the cheapest wins”
He said that the retailer has spent the last year looking beyond the data collected through its Clubcard scheme and is trying to understand more about how its customers “live their lives”.
Brasher said that the retailer is listening “more carefully about how they live their lives – their hopes, their dreams and ambitions” and that all of this information doesn’t “result in an average” and must be considered as “individuals”.
“No one wants to be the .2 in the 2.2 kids,” he said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSpeaking about the consumer outlook in the UK, Brasher said that it’s “not all doom and gloom” and that once you get past the negatives of cuts, consumers’ “dreams are still alive” and that they are enjoying things like cooking meals from scratch for their families and still buying “little treats”.
Asked directly about Tesco’s relationships with its suppliers, which last year, for example, saw it delist some Hovis bread products over a price dispute, Brasher said it has very long-term relationships with them but he insisted that “of course we’re tough customers”.
“Our customers want us to do a good deal on their behalf. But they always expect us to be fair,” he added.
However, he warned: “We can only push prices down so far. A bit of natural tension is a healthy thing.”
