Tesco Axes Value Range due to Consumer Embarrassment

Posted on 28 September, 2012 by Kirsten Kennedy

Anyone who regularly shops in Tesco will be familiar with the blue and white striped packages synonymous with the brand’s “Tesco Value” range. However, big changes are in store for Tesco commercial properties, with the supermarket giant revamping the packaging in order to make the discount option seem more upmarket.

Rather than the blue and white wrappers on food products, which have for years made the value range so recognisable, Tesco have decided to showcase their own brand products in brightly coloured packaging, making it more appealing to consumers. Additionally, the range has been rebranded as “Everyday Value”, with a wider range of foods available at competitive prices.

Despite the market busting prices of the Value range, Tesco felt the time had come for change as many of the store’s customers felt uncomfortable putting the easily identifiable Value items in their shopping baskets.

Commercial director of Tesco Fresh Food, Andy Yaxley, said; “Embarrassed is probably the wrong word.

“But customers told us that they questioned the quality of the Value brand because of the packaging and some didn’t feel comfortable putting it in their trolleys.

“Tesco was the first supermarket to launch a value range – but customer needs have changed. We have listened closely to what our customers want and Everyday Value will provide products that taste better, look better and are healthier.”

The revamped value range is not the only change in the pipeline for the retailing giants, however. Tesco’s premium range, Tesco Finest, is also due for a face lift, with new products and packaging expected to be introduced in stores nationwide from early next year.

Furthermore, the supermarket group has been trialling in store renovations for the past six months, and has made several monumental decisions aimed at putting Tesco back at the top of the grocery retailing chart. 25 per cent of commercial property space is due to undergo changes this year, as Tesco aims to make in-store shopping a more friendly and attractive prospect for consumers. In fact, boss Phil Clarke is so determined to ensure these measures a success that he has channelled £1 billion worth of investment into the long term changes for the brand.

The frozen food department will also be carefully examined and updated to suit consumer needs, while the bakeries will be modernised with wood finishing. Some stores will even trial patisseries, and if they prove to be successful customers can expect to see a wider range of freshly baked goods in their local stores by the end of 2013.

Finally, rather than dealing with the hassle of check out queues and assuring self-service machines that there are, in fact, no unexpected items in the  bagging area, chief executive Phil Clarke plans to trial handheld scanners in several superstores over the next few months. These scanners can be used while customers walk around the shops putting items in their trolleys then simply “docked” into a paying station when shoppers are satisfied with their purchases.

Mr Clarke said; “We are starting to see green roots of progress.

“Some of the changes are already being rolled out in all Tesco stores and some are on trial.”

Do you believe that the £1 billion investment programme will help Tesco to up their game and attract consumers back into their stores, or do you think it is simply a waste of money investing in stores when the internet side of the business is going from strength to strength? Would you be embarrassed to be seen with the old Tesco Value range items in your shopping basket, or do you think that, as long as you get good value for money, it doesn’t matter what the packaging looks like?

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