Tesco has struck a shop-in-shop tie-up with Holland & Barrett as the grocer bids to make better use of larger stores, Retail Week can reveal.
The first Holland & Barrett shop-in-shop was unveiled at Tesco’s Dudley Extra supermarket yesterday and measures 1,300 sq ft.
Tesco said it will open similar sized spaces at its stores in Gatwick, Newcastle, Coventry Arena, Watford and Bar Hill in Cambridge “over the summer” as it bolsters its health and wellbeing offer just months after wielding the axe on its NutriCentre business.
The grocery giant is focusing on driving customer service and bolstering its proposition across its core supermarket business as boss Dave Lewis seeks to build sales momentum.
Last year it penned a similar concession partnership with fashion group Arcadia, which has opened Dorothy Perkins, Burton and Evans shop-in-shops across a clutch of Tesco’s stores.
Tesco said it was “keen to learn” how the new Holland & Barrett stores would be received by its customers, but was “confident the brands and propositions will work successfully together”.
Holland & Barrett offer
The Holland & Barrett shop-in-shops, measuring between 1,200 sq ft and 1,600 sq ft, will stock around 3,000 lines across its health, food, beauty and sports ranges, including a host of its best-selling brands such as Bootea, snail gel and its coconut-based products.
Tesco shoppers will also be able to access Holland & Barrett’s natural Tea Bar and its pick n mix station for healthy snacking.
Tesco UK and Ireland boss Matt Davies said: “We’re always looking at new ways our stores can best serve the needs of our customers, so we’re excited to be embarking on this partnership with such a recognised and trusted brand as Holland & Barrett.
“The concessions will provide an exciting new offer for our customers that will complement our Tesco stores.”
Holland & Barrett chief executive Peter Aldis added: ”We know that Tesco’s customers are diverse, like ours, but one thing that they have in common is that they want access to a wide range of health and wellbeing products without having to take too much time out of their busy routines to source them.”
Big four problems
The tie-up comes as Tesco’s grocery rivals grapple with similar problems about how to make better use of space in their larger stores, which have become out of kilter with modern shopping habits.
Sainsbury’s has already penned concession deals with Jessops and Argos – and is in the process of acquiring the latter’s owner Home Retail Group for £1.4bn, with a view to installing Argos shop-in-shops in hundreds of its larger stores.
Asda is piloting a partnership with French sports giant Decathlon and is testing new store formats that provide more space for cafés and its George fashion and homewares offer.
Morrisons is bringing its Nutmeg clothing label into more stores and has partnered with shoe repairs specialist Timpson as it steps up efforts to offer additional services to its customers.