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Every little helps? Three in four ‘against new Tesco strategy’
Image © Jeff Blackler - Rex Features
Shoppers have spoken out against Tesco's plans to tailor its deals based on the incomes of nearby shoppers.
Retail magazine The Grocer revealed yesterday details of the supermarket giant's controversial strategy, which will basically see different products and promotions being offered in rich and poor neighbourhoods.
We polled around 5,500 MSN readers on the matter and found that more than three quarters (77%) of them were against it.
What exactly is Tesco planning?
The strategy will see value-brand products promoted more heavily in poorer areas, while the supermarket's Finest range of goods will fill more shelves in more affluent neighbourhoods, retail magazine The Grocer is reporting.
The stores will also tailor their promotions and discounts according to what they believe will suit customers in each particular area/region.
MSN Money poll
Tesco has stressed that there will be no variance in the price of non-discount goods across its branches
However, given the vast amount of promotions and deals on offer in Tesco stores, it's clear that a shopper in a more affluent area could end up paying more for their basket of goods than someone in a less well-off part of town.
Tesco is hoping the strategy, which will be trialled in 300 outlets across the UK, will help boost waning sales and ward off the growing threat posed by rivals.
Shoppers: "It's patronising"
When we ran the initial story yesterday, we asked you to share your thoughts. Perhaps unsurprising given the results of the poll, many of you were sceptical about the move.
On the proposal to promote value brand goods more heavily in less affluent areas, reader 'Kevin ONW' had this to say: "I find it insulting of Tesco to suggest that, if you are poor, you should have a lesser quality of food.
"I cannot for the life of me work out why they should have differences in food prices."
Similarly, 'Wendy Pickford' said it was "very patronising and manipulative of Tesco to decide what's best for the customer," before adding: "Shopping is about choice... we are all capable of deciding how much we want to spend on our groceries."
But a number of you also spoke out in favour of the move, stating it is simply giving shoppers what they want.
Reader 'Jarvis Cocker' said this: "If they do put the value-brand products to be promoted more heavily in poorer areas, while the supermarket's Finest range of goods will fill more shelves in richer neighbourhoods, this is what they will both probably want.
"I can't see a millionaire wanting an 8p a can beans and vice versa - they are only giving the public what they want, aren't they?"
"It's not like the goods won't be available at all in the stores, they are just promoting what they think the consumer in that particular area wants."
Watch this space
Clearly the move has stirred up a lot of controversy and it will be fascinating to see what impact it will have on Tesco sales.
Our poll showed the majority of shoppers are initially against the move, but are they angry enough to shop elsewhere, or will they be won over in time? Maybe other supermarkets will decide to follow suit.
Interesting times ahead.
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well tesco do your worst, i do live in a affluent area, with a large tesco store opposite my home, but within 5 miles there is a tesco store that i normally use, but bang next door to that is a very large morrison's store. if you bring this type of pricing i will just go next door. your loss
This could be a non-story. Tesco are in the firing line. The small convenience stores are more expensive and to an extent higher pricing is fair enough. There are business rates, stock limitations and other costs to bear on a smaller turnover.
However, if Tesco tries to be "cute" about such a strategy and customers (me too) feel we are being ripped off, or led along or mis-communicated with (again) it will be another nail in their coffin.
Plenty of people are looking forward to attending their funeral...
another point to make to tesco is they are very unlikely to build a store in a very affluent area , as planning permission would more than likely be refused. so called affluent people do not want a super market near them.
All supermarkets have been doing this for ages!
It makes marketing sense to target products to regions that will buy specific products.
Since the introduction of loyalty cards, they know exactly who buys what and where!
Even Waitrose, the best of the best, know their clientele and stock their stores accordingly.
I can't understand why Tesco would want to "come out" and blatantly insult their customers in a totally unprofessionally way.
How much does the CEO earn to **** up so well?
Maybe the COO was right to sell his shares a week before a profits warning! No co-incidence there!
I could do a better job for half the money - If you are intersted Tesco, then get back to me!
Tesco are the worst supermarket of the lot at the practice of tailoring commodity prices to specific stores. Take petrol for instance - in a West Yorkshire Tesco store it is some 6p per litre cheaper than in East Yorkshire. When I asked Tesco why - they basically said that it all depends on the demographics of the store (i.e. the perceived incomes of it's customers). In other words if you live in what they term a more affluent area, you will be charged more. This somewhat conflicts with their reasons for "putting up petrol prices" (i.e. world crude oil costs) when clearly such costs bear no relation to what they charge across stores.
Note also that the latest round of money off vouchers from Tesco to those with a store card mean that you now have to spend £80 to qualify for the £8 discount - previously is was £40 for £4 off - same percentage, they are just making you spend more - which in today's cash strapped society belies there claim to be helping the customer!
This used 2 b called marketing and makes sense. All of them just want our money- rich, poor, basic or fine dining-they really dont care
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Would you like to receive offers from retailers – such as discount vouchers or sale previews - from your current account provider?
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- Yes - I'd like to receive any offers that could save me money
- Yes - but only if they were tailored specifically to my spending habits
- No - I already know where to look for vouchers and discounts
- 64 %No - I don't want to be contacted by my bank about anything other than my account