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UK's Tesco turns attention to China
By Pan Xiaoyi |
December 17, 2010, Friday
|
Print Edition
Print Edition
UK retail giant Tesco has been refitting its stores in China to improve the look and shopping experience for Chinese customers.
"We have put a lot of money and effort into the stores as we are moving close to an international standard," said Gordon Reid, president of Tesco East China Region. "And we are very confident it will bring more customers and more sales."
The company has completed the refurbishment work in six stores in Shanghai with one currently under way and another eight in the pipeline for next year.
"We are going to other regions and provinces," said Reid. "We run about 70 stores in the rest of the country and we will start a refitting program in those stores soon."
The refurbishment program came as part of Tesco's efforts to increase its presence in China and to ride on resilient sales in the country.
Last month, Tesco, the world's third largest retailer, announced its plans to quadruple revenue in China to about 4 billion pounds (US$6.34 billion) over the next five years by more than doubling its number of hypermarkets to more than 200.
Tesco is also bringing F&F Blue brand to China. The F&F Blue fashion line is a big international clothing brand exclusively sold in Tesco and has become the No. 3 clothing brand in the UK.
"One of the biggest changes is the F&F Blue brand. It is in every Tesco store in the UK and other regions in Europe. To bring it here is something we are really excited about," said Reid.
Another big change is in the electrical department.
"In this department, you can really buy anything you want for your home from a rice cooker to plasma and 3-D televisions," said Reid.
"We have changed the whole look and feel of the electrical department and will be offering a big selection of mobile phones," added Reid.
A wider range of selected products is available including the hard-to-get iPhone 4 and iPad.
"We have a sufficient supply of the iPhone and you can take it away right now," said Reid.
The vegetable and fresh food areas have always been Tesco's strengths and the remodeling program has created more space for these products in order to provide the best quality and freshest foods at the best price.
Tesco has also teamed up with Christine, the famous bakery in Shanghai and World Expo Shanghai partner to make Christine cakes easily available to customers.
The refitting program also takes into account environmental problems by reducing energy consumption, as the company has vowed to cut carbon emissions in China by 10 percent before 2011.
"For any new store and refitted store, we use 25 percent less energy through new technologies including energy-efficient lighting, new refrigeration and conditioning systems," said Reid.
In addition, Tesco China will open its first low-energy distribution center in Jiashan County, Zhejiang Province next March.
The green distribution center will save an estimated 35 percent more energy than a normal distribution center with similar capacity, by cutting air leakage and using energy-saving air conditioners and refrigerators.
The 237,000-square-meter distribution center will supply groceries for east China and other Tesco-brand products nationwide.
"A whole network is our competitive edge and one of the biggest differences between us and rivals," said Reid. "Our network is connected. We also have fresh distribution centers, fresh food warehouses. Our individual stores are connected with our supply chain."
"We have put a lot of money and effort into the stores as we are moving close to an international standard," said Gordon Reid, president of Tesco East China Region. "And we are very confident it will bring more customers and more sales."
The company has completed the refurbishment work in six stores in Shanghai with one currently under way and another eight in the pipeline for next year.
"We are going to other regions and provinces," said Reid. "We run about 70 stores in the rest of the country and we will start a refitting program in those stores soon."
The refurbishment program came as part of Tesco's efforts to increase its presence in China and to ride on resilient sales in the country.
Last month, Tesco, the world's third largest retailer, announced its plans to quadruple revenue in China to about 4 billion pounds (US$6.34 billion) over the next five years by more than doubling its number of hypermarkets to more than 200.
Tesco is also bringing F&F Blue brand to China. The F&F Blue fashion line is a big international clothing brand exclusively sold in Tesco and has become the No. 3 clothing brand in the UK.
"One of the biggest changes is the F&F Blue brand. It is in every Tesco store in the UK and other regions in Europe. To bring it here is something we are really excited about," said Reid.
Another big change is in the electrical department.
"In this department, you can really buy anything you want for your home from a rice cooker to plasma and 3-D televisions," said Reid.
"We have changed the whole look and feel of the electrical department and will be offering a big selection of mobile phones," added Reid.
A wider range of selected products is available including the hard-to-get iPhone 4 and iPad.
"We have a sufficient supply of the iPhone and you can take it away right now," said Reid.
The vegetable and fresh food areas have always been Tesco's strengths and the remodeling program has created more space for these products in order to provide the best quality and freshest foods at the best price.
Tesco has also teamed up with Christine, the famous bakery in Shanghai and World Expo Shanghai partner to make Christine cakes easily available to customers.
The refitting program also takes into account environmental problems by reducing energy consumption, as the company has vowed to cut carbon emissions in China by 10 percent before 2011.
"For any new store and refitted store, we use 25 percent less energy through new technologies including energy-efficient lighting, new refrigeration and conditioning systems," said Reid.
In addition, Tesco China will open its first low-energy distribution center in Jiashan County, Zhejiang Province next March.
The green distribution center will save an estimated 35 percent more energy than a normal distribution center with similar capacity, by cutting air leakage and using energy-saving air conditioners and refrigerators.
The 237,000-square-meter distribution center will supply groceries for east China and other Tesco-brand products nationwide.
"A whole network is our competitive edge and one of the biggest differences between us and rivals," said Reid. "Our network is connected. We also have fresh distribution centers, fresh food warehouses. Our individual stores are connected with our supply chain."
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