RETAIL NEWS

Tesco goes green with carbon rating scheme, Tesco has announced a major new initiative intended to make the company more environmentally sustainable…TNS reports 5% market growth, TNS worldpanel has unveiled its latest figures analysing the UK shopping basket…

Tesco goes green with carbon rating scheme

tesco has announced a major new initiative intended to make the company more environmentally sustainable. The UK’s leading multiple grocer is developing a carbon  rating scheme for all its products to enable consumers to find out about the energy expended in getting each product to market, and thus empower shoppers to make informed purchasing decisions. The plan is part of a £500 million package aimed at reducing Tesco’s carbon dioxide output and impact on the environment – the company has pledged to reduce its carbon footprint by 2020.The move represents a rapid response to Marks & Spencer’s announcement last month. M&S stole a march on its high street rivals, unveiling ambitious plans to cut emissions by 80% over the next five years. The result has been a flurry of activity from rival chains during the last month, as all parties seek to highlight their green credentials to meet growing demand from consumers.Speaking in the drinks business green issue in January, Garry Felgate of The Carbon Trust pointed out that one of the organisation’s key objectives is to devise a system that enables consumers to find out the environmental impact of individual products. As part of a range of initiatives, Tesco is investing £5m in the Environmental Change Institute, which aims to develop a method to score products based on production, transportation, refrigeration and packaging.

Tesco chief executive, Sir Terry Leahy, says: “The market is ready. Customers tell us they want our help to do more in the fight against climate change. We have to make sustainability a significant, mainstream driver of consumption.”

TNS reports 5% market growth

TNS worldpanel has unveiled its latest figures analysing the UK shopping basket. The data – which tracks the 12-week period to January 28 – indicates strong sales during the pre-Christmas period that continued after the holidays. Overall sales during the three-month period were up 5% versus last year.Commenting on the market share among the multiple grocers, Edward Garner, TNS Worldpanel director of research says, “While Tesco remains dominant with 8% growth to a share of 31.5%, it is seeing solid competition from rival supermarkets Asda, Sainsbury’s and Morrisons. Both Asda and Sainsbury’s continue to grow, with share increases to 16.8% and 16.5% respectively, and Morrisons remains stable with an increase of 4% over the last year.” The  Worldpanel figures also indicate “strong performance by Aldi and Lidl”.

In other news, TNS has acquired Sorensen Associates, a US company that specialises in shopper insights.

Discounters find favour in which? magazine survey

A major consumer satisfaction survey conducted by Which? magazine indicates that British consumers are increasingly drawn to the discount retail sector. The discount chains Aldi and Lidl outscored all four of the leading multiple grocers.The “no frills” supermarkets, both of which originate from Germany, first entered the UK in the early 1990s, but received a frosty reception. However, the survey suggests that consumers have warmed to the concept. A panel of consumers awarded the following “overall satisfaction scores”: Aldi, 66; Lidl, 64; Sainsbury’s, 61; Tesco, 58; Asda, 58; Morrisons, 56. The top scoring food and drink retailer was Waitrose, scoring 80.

The two German stores scored particularly well on price, with over three quarters of respondents ranking them as “very good” or “excellent”, indicating that price continues to be a crucial factor for UK consumers.

WDF introduces new pos material

UK Travel retail giant World Duty Free will be rolling out barker cards across its stores, providing an opportunity to communicate greater levels of product information to consumers. Speaking exclusively to the drinks business Fraser Dunlop, newly appointed head of category – liquor, tobacco, food and tax free, explained that he has already discussed the concept with key suppliers, and hopes to roll it out across stores in the coming months. “We need to provide consumers with more information in order to give them a reason to try something different,” he explains.The half A4-sized cards will give plenty of room to communicate the brand story and give tasting notes, providing consumers with a higher level of information about the merchandise and, Dunlop predicts, increasing the probability of purchase.

Dunlop joined World Duty Free in December having spent the previous 10 years at Sainsbury’s, most recently as category manager for beer, wine and spirits.

© db March 2007