Leading supermarket chain Tesco is to branch out into non-food stores in a move that will put increasing pressure on high street retailers.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Tesco, which has a 29% share of the grocery retail market and a 12% share of all UK retail sales, plans to open its first non-food store this year, reported The Financial Times.
The company has not yet decided on a location for the trial store, which will sell clothes, DVDs and electrical goods, but said that if the format is successful further non-food stores will follow.
Non-food sales currently account for around 20% of Tesco’s turnover, but the retailer has just 6.5% of the UK’s non-food retail market.
“We will trial a non-food store at some point this year,” the company was quoted by the FT as saying. “Shoppers expect us to try out new ideas.”
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 GlobalDataTesco’s biggest rival, Wal-Mart’s Asda, already has a non-food store, as well as a chain of high-street clothing outlets under the George banner.
