The huge recruitment drive is key to the grocer fulfilling its ambition to be as big in non-food as it is in food. Tesco is to kick-start the search later this month and wants to attract the best talent from high street giants.
A bolstered buying team will be able to improve and extend Tesco's non-food ranges online and in-store.
The retailer has earmarked fashion, toys and electricals as categories where it can generate significant growth and is also poised to enter new arenas such as furniture (RW, August 26, 2005).
Tesco is also understood to be recruiting buyers for its new catalogue venture, expected to launch later this year, which will sell an extensive range of general merchandise. The catalogue will pitch Tesco head-on against Argos and will also enable the retailer to offer a category-killing non-food range to customers at its smaller stores.
Tesco would not confirm how many buyers it wants to hire and said that its non-food recruitment programme is ongoing.
A spokeswoman said: 'Non-food is a big growth area for us. We have always said we want to be as successful in non-food as we are in food. We are therefore always keen to recruit talented people to help us provide our customers with a great offering in-store.'
Charles Stanley retail analyst Simon Proctor said: 'In the absence of any loosening in planning regulations, Tesco is going to have to come up with different approaches to drive [non-food] growth, such as standalone non-food stores and catalogues. These bring with them different business dynamics, so success is not a forgone conclusion. But I wouldn't bet against Tesco.'
The retailer is to outline its non-food plans to the city next Thursday during an analysts' trip to its Bar Hill Extra store in Cambridge.
At its interim results last September, Tesco revealed that its non-food sales increased by 13 per cent to£2.8 billion during the first half, from£2.5 billion the year before.
Tesco's US challenge
Tesco last week revealed its plans to move into the US market, but it will face fierce competition from several established American brands.
The retailer's West Coast pilot will pit it against three big grocery players: Kroger with 442 stores, Safeway's Vons chain with 325 stores, and Albertsons, which has a 786-store stronghold.
In the middle market, Tesco faces regional retailers such as Save Mart, which has recently been trying out an upmarket grocery format, as well as the deli-inspired Trader Joe's chain, which is popular among well-heeled shoppers.
Planet Retail analyst Bryan Roberts said: 'There is room on the West Coast for a more upmarket convenience offer. Tesco can provide an Express-style format that will mark it out against the competition.'
If the retailer sets up on petrol station forecourts, it will go head-on with 7-Eleven's 1,200 West Coast outlets.
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