Allowing for the fact that economic conditions in the US since its launch have been very difficult, what else has gone wrong? It's a recognised name but not a brand in the sense of being defined by its product - it's defined by price and convenience.
And price and convenience is what the Yanks do better than anyone else. Is there a gap in the market? Setting aside whatever one-off costs they may have incurred, the decision to go into the US and go under a different brand name offers great challenges for a retailer that's all about value, he says.
But it's not that easy. One of the reasons behind Tesco's success in the UK was its use of consumer data garnered from loyalty cards, he says, but applying the same logic to any market might not be enough. The company was also forced to expand quickly, and on unsatisfactory retail sites, to try to meet the overheads of its large-scale infrastructure.
The firm even built an 80,sq ft factory in Los Angeles to produce the single-serving ready-meals so beloved of British consumers. But its focus on own-brand products meant it failed to offer enough local US favourites, and that, fatally, its branches contained almost identical stock.
Shoppers here were bemused by imported British standards, including the profusion of watercress in salads, and the privileging of pre-packaged sandwiches over deli counter dishes prepared to order in-store; these are a regular feature of similar US supermarkets, where people prefer to ask for precise portions of pickle, mayonnaise and so on.
And the cookies! Join thought-provoking conversations, follow other Independent readers and see their replies. But there is one country where the British retailer failed to take off: The United States. What Happened? In the first five months, 60 new stores. Want to find out how Vertex can help you? Get in touch with one of our consultants today!
0コメント