Supermarket Space Race To Blame For Many Of The Retail Industry’s Woes – Tesco Chairman

In an extensive interview with the Telegraph, Tesco’s Chairman John Allan gives his insights on the industry and outlines how the major supermarkets near obsession with opening more and more shops contributed their recent troubles.

Read the full article on the Telegraph website

Further insight – Supermarkets aim small in new space race

NAM Implications:
  • “…over-capacity will be rationalised…” The key issue is whether retailers will take this step themselves or await its imposition by the market…
  • Given the difficulties in reversing sell-offs, better for retailers to cut now and be a little pinched for space, rather than having to react to falls in share price
  • Meanwhile, some instore theatre opportunities for suppliers…
  • …but a realistic strategy would be to anticipate the B&M and online split for their categories, and treat this as the new norm…
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