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Get your free copy27 August 2008, 17:37 PM
- Britain's biggest supermarket chain, Tesco, could make more than £500m thanks to its foray into local food, according to The Times.
The newspaper reported that Tesco’s sales of locally produced food and drinks have increased by 40% in 2008 and the multiple, which stocks 3,000 regional product lines, is reaping the rewards for its decision to venture into the market for local food.
Willie Hamilton, the commercial director for Tesco Local, told The Times, “We set ourselves very stretching targets to get to £1 billion in sales of local products by 2011. People are cash-strapped but our numbers are bang on target. Some 84% of our customers are saying that they would like to buy local lines. It’s a fantastic opportunity and that’s why we’re investing so much.”
However, it is not clear whether this increased demand for local products will drive more consumers towards delicatessens and farm shops, or simply strengthen Tesco’s position in the grocery sector.
