There is a slight glimmer of hope. Out of all this dire economic news Tesco are still going strong. In the midst of a crippling recession, that’s seen their high street contemporaries filing for bankruptcy, they’ve announced the creation of 10,000 new UK jobs today.
This has come of the back of a 2.5 per cent increase in like for like sales over the Christmas period. A new discount range, aimed at Aldi and Lidl shoppers, is attributed to all the good fortune. Initially, the range was aimed at fruit and veg and was then rolled out to other ranges.
The range has turned a profit for Tesco but only just. Growth has been relatively slow when compared with the same time last year. Finance director Andrew Higginson said the Christmas trading figures were the weakest “probably since the last recession”.
Still, things could be a lot worse. Their lucky to still be turning a profit at all when so many of their high street contemporaries are fending off the bailiffs.
The fact that Tesco are investing back into the market, not only creates more jobs when it seems there are so few about, but it also boosts consumer confidence at a time when it’s needed the most.
The budget range may be doing wonders for their sales this season but it’s online where Tesco’s really raking in the sales. Total sales from Tesco.com and tescodirect.com increased by more than 18 per cent to 273 million over the 7 week Christmas period.
Of that it was electrical and home entertainment goods in particular that were the top sellers. It goes to show how much people are now purchasing bigger items online. They’re, not only, conscientious about where they buy their goods from but are so much more price aware than before. Their choosing to invest in home entertainment systems rather than expensive nights out.
Tesco are in the best position to take advantage of the floundering market. They have 440,000 staff worldwide and they trade in 13 other countries. At the same time as feeling the pinch they can take advantage of the week pound by trading abroad. It’s as a shame poor old Woolies didn’t have any Hong Kong or Bangkok branches to keep the pick and mix afloat.
