10th April 2001 - Tesco announce £Billion profit.

Tesco have announced profits in excess of a billion pounds. This has been achived despite margins dropping to just over 3%.

Retail analysts say that their succes can be put down to Tesco's increasing non-food sales, targeting 'the new consumer' and effective use of the Internet.

The new consumer is cash rich and time poor. They have three basic needs:-

• Time
• Attention and
• Trust

It appears that Tescos have successfully recognised these needs and targeted their retailing offering to meet them. Shopping is now seen as having to modes - getting in the essentials and as a recreational activity. Small local branches and the effective use of the Internet are meeting the first and the larger branches offering a wide range, including branded clothing, are meeting the other.

See Also:-

Tesco