How should Tesco address the current economic crisis?
Tesco’s business model (food & ‘cheap’ goods) is not likley to be effected as much as other companies .. Everyone has to buy food .. and whist you are doing your ‘weekly shop’, Tesco tempts you with other goods. So long as they keep food prices competitive, their customer base is unlikely evaporate overnight to the smaller ‘start-ups’ (such as the ’99p’ stores = see, for example, Woolworth). I suspect that their main profits come from non-food items .. this suggests that their smaller stores, especially in town centers (and thus paying the highest rent & rates) that do not have room to stock the whole range of non-food items, return the lowest profits – plainly the obvious strategy is to continue the move out-of-town (where the customer is attracted by free car parking and ‘cheap’ petrol) rather than waste resources in town centers (where customers can easily compare prices with the store next door) If I were running Tesco, I would be actively seeking to increase out-of-town ‘hypermark
