Tesco has appointed a former leading executive of Dutch supermarket chain Jumbo as its next managing director of large stores.
Key appointment to nurture large stores revival
Duncan Hoy, who was previously operations director at Jumbo, will join Tesco in June. He will report to Tony Hoggett who has been promoted from UK retail director to UK chief operating officer. He will be tasked with building on the tentative revival of trading at Tesco's superstore and Extra estate. At yesterday's annual results presentation, Tesco revealed that Extra LFLs recovered to -0.3% in Q4 (from -3.3% in the previous quarter) and superstore had trading picked up from -3.2% to -0.7%.
New thinking to attract more customers
The improvement comes as Tesco thinks imaginatively about how best to deliver a retail experience that customers actively choose to shop at. Recently opened Tesco Newmarket shows how Tesco is developing a more customer centric experience in big stores, but Tesco is actively looking at new ideas to reinvent the big store concept. In the Q&A at yesterday's results session, Asia CEO Trevor Masters spoke of how in Thailand, Tesco is subletting 40% of space at some of its hypermarkets to sports retailer Decathlon, driving new footfall to the more compact Tesco store. UK CEO Matt Davies spoke of how large stores needed to focus on freshness and loving and living food. He also made it clear that Tesco would continue to explore partnership opportunities to create a more compelling proposition, a move that could see the disposal of some assets that Tesco has acquired to diversify large stores over recent years. Press reports suggest Tesco has already appointed advisers to explore the sale of Dobbies garden centres and uncertainty surrounds the future ownership of Tesco's Harris + Hoole and Giraffe businesses.
Jumbo experience will provide inspiration for Tesco
A former captain in the Gurkhas, Hoy has worked for Jumbo since 2013 having previously headed up retail operations at C1000, a smaller rival that Jumbo acquired. Jumbo has recently been a pioneer in developing next generation large store formats with two Jumbo Foodmarkt concepts now established in Amsterdam. These divide their floorspace between a produce led foodhall area complete with compelling counters and a centre store range that enables shoppers to meet top up and weekly needs. For more on Jumbo, visit our Jumbo Snapshot or our Amsterdam City Guide.
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