Tesco’s are frequently cited as an exemplar for achieving profitable growth in the food retail sector. However in this ‘Which’ report (see link below), Tesco do not fare well. Their survey suggests that the best supermarkets are Waitrose and Aldi. Waitrose is not so surprising since they clearly service the top end of the market. Aldi, however, is more surprising. Aldi have a distinctly different business model to Tesco. While Tesco generate consumer interest through promotions, Aldi do so by one-off deal where ‘when they are gone, they are gone’. Promotions cause amplification, waste and general havoc in the supply chain. Perhaps Aldi are reaping the benefits of their model?
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