Clive Black of Shore Capital Stockbrokers has said that he expects Tesco's 'Finest' private label range to be "materially re-engineered and re-profiled" as part of chief executive Dave Lewis' strategy to simplify the Tesco offering.
Speaking at the Where We Shop business breakfast seminar, hosted by Checkout and Ignite Research last week, Black said that this reappraisal would likely also "see the end of Tesco Value", to be replaced with a standard brand more akin to that offered by the discounters.
"We believe superstores and hypermarkets will begin to fight back against the discounters," Black explained.
"In Ireland, we don't expect Tesco to be passive going forward in terms of targeting Aldi and Lidl, and therefore that is something I think Dunnes and SuperValu need to think about; whether their promotional schemes and loyalty schemes can deliver real price value to customers. I think it will be a very big challenge for those retailers."
Commenting on the fallout from last month's Brexit vote, Black said that the Irish food sector needs to be "strategic about where the UK is going.
"I think the only thing we can say with certainty is that there is uncertainty, but with everyday that goes by, the sun comes up, the dust settles a little bit and I think common sense can prevail. We're not fans of people who talk in hyperbolic terms, but there is a need for mutual respect at this time, and recognizing the importance of democracy."
To obtain a copy of the 2016 Where We Shop report, produced by Checkout and Ignite Research, contact [email protected].
© 2016 - Checkout Magazine by Stephen Wynne-Jones
