Tesco is to launch its own-label branded range of foods for children.
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The company does not normally need to catch up with its arch-rival Sainsbury’s on the UK retail scene. Yet its ‘Tesco Kids’ brand is a copy of Sainsbury’s Blue Parrot Cafe range for children. These days, Sainsbury’s is making Tesco work a lot harder to remain number one.
UK supermarket chain Tesco is following Sainbury’s lead by launching a food range for children. Tesco has had the upper hand over domestic rival Sainsbury’s for a long time. However, Sainsbury’s has been working hard to recapture grocery market share.
Over recent years many initiatives have been launched aimed at repositioning Sainsbury’s brand on quality and innovation
rather than just being price competitive.
In June 2000 Sainsbury’s signed up celebrity chef Jamie Oliver to boost its emphasis on the quality, taste and variety of its foods. The deli counter received attention with the adoption of a home meal replacement service, ‘Food To Go’. A number of store-in-store concepts have been signed up to expand the range of services Sainsbury’s offers. Most recently, a new concept store has opened based around customer’s ‘wish lists’, incorporating new technology and services.
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By GlobalDataSainsbury’s is committed to regaining its dominance in the grocery retail market and its developments are working. Towards the end of 2001 Sainsbury’s took market share from Tesco for the first time in seven years. Now Tesco is following Sainsbury’s lead. It is launching “Tesco Kids”, a 50-strong range of healthy positioned products for children aged five to
eleven. This age range causes the most problems for parents encouraging their children to eat healthily, and Sainsbury’s has been targeting it with its constantly expanding Blue Parrot Cafe range of products.
Tesco is still a long way ahead overall. Besides a strong UK core, Tesco is rapidly developing on the international scene and is exploiting eCommerce successfully. As Europe’s second biggest retailer, Tesco is now comparing itself to international rivals such as Carrefour.
However, this latest development is a sign that Sainsbury’s is now making Tesco work a lot harder to remain the number one food retailer in the UK.
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