Tesco announced today that they made over £3 billion profit during the last year.
Obviously no one has told Tescos that we are now officially in a depression. The supermarket chain grows year on year, chipping away at its competition and finding new market niches to fill and then dominate.
Hats of to Tesco then. Theirs is a superb achievement in such difficult times for retailers. It’s interesting to see, though, that Tesco has been losing some of its customers to low price rivals such as Aldi and Lidl.
No doubt wheels are spinning in Tesco HQ to find ways to woe those customers back.
Sainsburys seems to get better and better and must now be starting to gnaw at the heels of the Tesco giant. I thought that it was particularly telling that Tesco were comparing the number of their price cuts against the price reductions available in Sainsburys in a recent TV advert.
To continue this impressive sales and profit record, Tesco must keep finding new market opportunities. That such a large company can keep its focus and defend its core businesses in the face of strong competition, is truly impressive.
If that commercial zeal and marketing might could only filter through to other sectors of the UK economy, then maybe the depression that we find ourselves in could be short lived.