Hi there,
Happy August, I hope you’re continuing to enjoy your Summer, whatever it brings!
Since returning from my holiday, I’ve heard a lot of chatter and concern about Tesco’s ‘Fit for Growth’ reset. I thought I’d share the key facts and help you prepare for those difficult conversations so you can tackle them with confidence.
What is Tesco's ‘Fit for Growth’ Reset?
‘Fit for Growth’ is a significant review aimed at supercharging efficiency and competitiveness across Tesco’s entire range of fresh and packaged food.
They want to take on inflation by reducing prices and shaking things up in their fresh and packaged goods lineup. They say that their ultimate goal is to offer customers better value, as well as an even wider range of sustainable and healthier choices.
How to prepare for ‘Fit for Growth’
Let's dive into how you can get ready for those tricky conversations with your buyer:
Thoroughly review your product range: Take a good look at all the products in your range and compare them to your competitors. Identify areas that might be affected by Tesco's Fit for Growth Reset. Are there any items with low rate of sale or where you’ve had availability problems? Keep a list of your products' strengths and weaknesses, and get ready to stand up for why they deserve a spot on Tesco's shelves.
Use multiple data sources in your analysis: Tesco will partner with DunnHumby throughout their ‘Fit for Growth’ process. This means it's essential to speak the same language where you can by using DunnHumby data. However, by utilising other data sources and shopper insight in your analysis, you can help fill any blind spots Tesco might miss with DunnHumby data alone.
Review pricing and margins: Brace yourself, because Tesco want to see price cuts "across all tiers". It's time to go over your pricing strategy and margins. Be ready to go deep with Tesco, pull together a rock-solid plan to justify your prices and align with the relevant people in your business on where there might be some wiggle room.
Enhance health and sustainability credentials: Since Tesco are emphasising health and sustainability in this process, enhance your product's credentials in these areas. Highlight any certifications, eco-friendly packaging, or healthier ingredients. If feasible, consider making improvements to align your products with Tesco's objectives. Demonstrating your commitment to these values can strengthen your position during negotiations and increase the chances of your products being retained in the new range.
The Takeaway
Here's the thing, Tesco's Fit for Growth Reset might seem like a big deal, but at its core, it's not an entirely new idea.
Think of it as a more detailed and thorough range review process to make sure Tesco's shelves are stacked with the absolute best products at the best prices, and of course with the best margins.
And guess what? If your products are already adding value to their respective categories, you've got nothing to worry about! Armed with all the right information, you'll make it through negotiations with no (or very few) problems.
If you have any questions or need any help assessing your range, don't hesitate to reach out.
If you want to know more about preparing for retailer meetings, check out our online course, Create a Category Led Sell in Story.
This course is packed with top tips and exercises that help you to convince a retailer that they need your products on their shelves. Ready to sign up? Use the code BLOG10 at checkout to get 10% off!
Interested for your whole team? Get in touch to find out about team discounts.
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“A very clear, and easy to follow course! Ella's videos were in bite size chunks, with supporting worksheets to really put what you've learnt to the test!” Charlotte (Scrumbles)
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