Tesco has revealed that it is scrapping its Metro format, with existing stores being rebranded under the Express and Superstore fascias.
The move, first reported by trade publication The Grocer, comes nearly two years after a major overhaul of the Metro stores which saw the loss of thousands of jobs, a product range rationalisation, and cuts to management. This aimed to improve the profitability of the format, which had been impacted by the rise of the discounters and changing shopping habits.
Tesco originally designed the Metro stores with the idea of catering to larger, weekly shopping routines. However, the retailer found that nearly 70% of its customers have been using them as convenience stores, buying food for that day.
A Tesco spokesperson said: “Over the last few years, we have seen our customers’ shopping habits change and we have taken the decision to re-brand all of our Metro stores to better reflect this.”
Over the coming months, 89 of the current Metro stores will be rebranded as Tesco Express, while the remaining 58 stores will have their Metro signage removed and be referred to as Tesco Superstores.
NAM Implications:
- Success in retail…
- …has to be about failing fast…
- …and acting accordingly.
- Reacting pragmatically to changes in shopper behaviour…
- …before rivals do it on your behalf.
