Wednesday, January 23, 2008

Tesco enters department store biz

Tesco is planning to open large-format stores emphasizing hard goods:

Tesco is plotting an assault on the high street with plans to build department store-style shops to take on the likes of Debenhams, BHS and Marks and Spencer.

Britain's biggest retailer is looking for big sites in town centres to house its fast-growing non-food ranges - from jewellery and watches to household goods - alongside its groceries.

In a marketing document describing the multi-level town centre store as a "whole new concept", Tesco said the shops would sell food, televisions, clothing, homewares and toys over two or three floors, with escalators linking the levels.

Combined with the news (next post) about Wal-Mart opening small-format stores, it emphasizes the point that continued growth for the biggest retailers requires multiple formats and multiple categories.

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