Tesco Must Act Fast, Take Drastic Actions To Stop Decline, Analysts Say

UK retailer Tesco must invest £450 million in providing shoppers with more value, according to market analysts who also said the company should go beyond improving service and making its stores look better. Validating in a way US broker Bernstein’s 2013 assertion that Tesco was increasing its prices faster than its rivals were doing, analysts including those from Espirito Santo said Tesco lags behind its competitors in terms of consumer perception on produce quality and value for money. Results of Espirito Santo’s SpendTrend survey of 2,000 shoppers revealed Tesco relied heavily on a confusing range of “multi-buy promotions, requiring shoppers to depend on “multi-pack deals to get the best value.” Analysts are calling on Tesco chief executive Philip Clarke to take prompt and drastic actions, as the retailer continues to lose market share to discount retailers and high-end market competitors.