The supermarket giant's clothing sales stand at about£800 million a year but it is expected to reach annualised sales of£1 billion by the end of next year as it ramps up its clothing offer.
Tesco sees clothing as a non-food area in which it can boost its market share significantly. Chief executive for clothing Terry Green was confident that the retailer can become the number one clothing retailer by volume in the medium-term. 'You're talking four years from now, assuming we can get all the space we require,' he said.
Under Green, Tesco has been recruiting heavily to bolster its team of buyers and merchandisers and is devising an upmarket fashion brand to sit alongside its Cherokee, Florence & Fred and Value clothing ranges.
Deutsche Bank's James Collins said in a note that Tesco is to trial lower stock density and higher visual impact merchandising in five stores 'to raise the mix more towards better and best than the current good bias.'
No comments yet