Analysts Clive Black and Darren Shirley recommended a focus on price strategy to revitalise the fortunes of Britain’s biggest retailer. “Tesco has to be more price competitive on fresh and chilled food in particular and price competitive against the limited assortment discounters,” said Black and Shirley.
“However, the pricing strategy needs to more effectively sell its assortment too; fresh food, private label, proprietary brands and non-food. Such a programme is not, therefore, just about price, it is a major exercise and, again, requires time.”
Meanwhile, they remained unsurprised about newspaper reports revealing the resignation of company secretary Jonathan Lloyd and speculation about the future of chair of the audit committee Ken Hanna. Further board changes – probably including the appointment to a new chairman – were highly likely, said Black and Shirley.