This is a significant step forward in comparison to where Tesco found themselves several years ago and has come as a surprise to many in such an unstable market.
It seems that Tesco have understood the need to improve supplier relations and are the most improved retailer in supplier relationships for third successive year which was announced at the 2018 GCA conference.
Tesco have credited the upturn in performance due to:
- Tesco has enabled suppliers to access higher level of combined UK sales growth through the merger with Booker
- Tesco has worked alongside 358 existing suppliers to create new ‘Jack’s’ brand with 1,800 products. 8 out of 10 food and drink products are grown, reared or made in Britain with 9 operating stores. Jacks has been pitched as a direct competitor to Lidl and Aldi.
- They are working in partnership with Carrefour to identify opportunities in Tesco own-label and branded products
Going forward Tesco are looking at big plans for the Tesco Clubcard format and is said to be looking to take on Ocado and Amzaon.
Dave Lewis, Tesco CEO said Tesco had been building stock of "non-perishable" goods such as canned food ahead of a possible no-deal exit from the European Union.
But he added Tesco had not seen any "discernible change in behaviour" from customers during the period of Brexit uncertainty, with no evidence of stockpiling from customers.
“After four years we have met or are about to meet the vast majority of our turnaround goals. I’m very confident that we will complete the journey in 2019/20.
We have restored our competitiveness for customers.
The NFU engages with Tesco senior management on a regular basis and will continue to keep the Supply Chain Engagement overview updated for members to understand what was discussed in these meetings. Please click here to view.
To read the full results, click here
Find out more about the Food Chains work with retailers:
NFU responds to the CMA on Sainsburys/Asda merger
NFU welcomes GCA recommendations following Co-op investigation