Tesco's Chief Exeuctive Philip Clarke said on Wednesday that the retail industry has experienced a 'techtonic shift' in the way it operates, in comments made while speaking at the World Retail Congress in London.
He told listeners that as a result of the eurozone crisis, reduced growth in once high-growth regions has meant companies have been forced to get to grips with new technology to ensure they remain competitive.
"The choice we face is a stark one. Do we lead the revolution or do we become victims of evolution?" Clarke said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Digital does not just offer smart new ways to shop. It gives us the opportunity for a warmer, more meaningful conversation with our customers, local communities, our colleagues and the suppliers who we work with."
He described how digital technology, particularly smartphones, now offers a lifeline to retailers in economically challenging times by finding new ways to personalise the shopping experience of their customers.
The CEO told the audience that he believes "apps are the new High Street" with online shopping offering "all the core growth in the UK food business". He revealed that online food shopping is all the growth it has in its core food business in the UK, saying "people are opting out of the store".
Looking forward Clarke added: "Retailers need to build strong and trusted brands, that need is stronger than ever. More than half of consumers shop with just five retailers or fewer, showing the power brands can have. Brands which appeal to the head as well as the heart exerting an emotional ad rational pull."
"I don't want us to be a part of the future: I want us to help to shape the future. Fast, exciting, noisy, open to all, welcome to the new era of retailing: an era in which a seamless, personalised offer is critical to winning customers in a world of change."
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
