Retail news round-up on April 16, 2015: Sainsbury’s looks to convert food space; Tesco considers reward scheme; Asos to go mobile in China.
Sainsbury’s looks to convert food space into non-food
Sainsbury’s is plotting conversion of shop space equivalent to almost 40 supermarkets from selling food into non-food as it tries to fight back against a fall in grocery sales, according to The Telegraph. The supermarket giat has identified 1.5m sq ft of space across the UK - 6% of its portfolio - that it no longer needs for food as customers switch spending to convenience stores, the discounters, and online.
The grocer intends to use half of the space to sell its range of own-brand non-food products such as kitchenware and homewares. For the remaining half, Sainsbury’s is in talks with other retailers about subletting space.
Tesco mulls reward scheme for senior managers
Tesco has been holding talks with City institutions about the details of a revised long-term incentive plan (LTIP) for thousands of senior staff even as it prepares to announce the biggest annual loss in its history. The grocer is understood to be sounding out leading investors about the new bonus scheme, according to Sky News. The retailer’s new leadership team is keen to incentivise top managers who participate in its bonus and LTIP schemes.
One shareholder briefed on Tesco’s proposals said the company wanted to adopt an LTIP scheme for 2015 based on total shareholder returns, with a more nuanced framework implemented in subsequent years. Shareholders are said to be broadly supportive of the plans, more details of which are expected to be set out in its annual report next month.
Asos to go mobile in China
Asos is developing mobile apps together with technology provider Red Ant for its increasing customer base in China, Essential Retail reports. The online fashion retailer will launch apps for iPhone, iPad and Android this summer as part of its continued expansion into international markets. The plan is to use Red Ant’s mobile commerce platform AppCommerce.