Promotions have never been more important in retailing than in today’s ultra-competitive market.

It’s well known that in the current uncertain climate, shoppers need to be given a reason to buy. And as retailers from Morrisons to Home Retail to Debenhams have flagged up over the past week, it is promotions that are giving them that reason.

Promotions have never been more important in retailing than in today’s ultra-competitive market. In grocery, the proportion of goods being sold on promotion is at historic highs, but in non-food too customers are shopping around more either delaying their purchase decisions or basing them on what’s on promotion and when.

At a time when prices in many sectors, but especially food, are rising, a high level of promotional activity helps mask the true level of price increases, and when supported by suppliers, can help maintain margins too. The scale of promotions on key items like milk, and the spending going into advertising them, shows just how important they have become in driving footfall.

With inflation coming through strongly in both food and clothing, promotions need to be intelligent and targeted in order to avoid diluting precious margin. But it’s a road retailers have no option but to go down. It might be too early to call the death of Everyday Low Prices - after all, it’s a strategy that has served Walmart well over decades - but Asda’s lacklustre performance seems to confirm that in today’s ultra-competitive market customers expect something more if a retailer is going to catch their eye.

Phil Clarke’s focus will be global

When it comes to expanding overseas - its difficulties in the US notwithstanding - Tesco remains the benchmark to which all UK retailers should aspire. Its ability to leverage its scale while tailoring the offer to the individual markets it operates in, combined with its willingness to stay the course and invest in achieving scale are key lessons for any business looking to go global.

But what’s also interesting about Jennifer Creevy’s feature on her visit to South Korea and China is incoming chief executive Phil Clarke’s comments on how he plans to spend his time after he takes the helm next March.

He might be spending a few more nights in his own bed than he does at the moment, but expect Richard Brasher to be given a clear run with the UK business. Clarke’s experience running the international business means he knows better than anyone that this is where Tesco’s growth lies.