UK: Tesco ends specialist food-to-go store trial | Progresiv

A report in the Daily Telegraph newspaper has revealed that Tesco's two trial dedicated food-to-go stores at Philpot Lane and Villiers Street in London are to close as of 4 March. The two stores were opened in 2014/15 as part of a drive to secure a bigger share of the London's ever expanding lunchtime and food-to-go market; located to provide access to significant parts of the capital's working and commuting population. In addition to Tesco's own food-to-go ranges, both stores also initially incorporated 'made to order' counters operated by partner businesses, aiming to provide customisation and additional brand personality; to compete with the specialist brand concepts (led by Pret a Manger) that have become a striking feature of London's food-to-go market in recent years.

While the 'Burrito Kitchen' concession in the Villiers Street store has continued to operate, the 'Freds Food Construction' counter at Philpot Lane was terminated in July 2015, 10 months after the store opened. A Tesco spokesman commented: "As part of the trial, our customers told us they prefer the wider range of products offered in our Express and Metro stores." suggesting that the trial stores were failing to fulfil shopper expectations of a Tesco format. Both stores are significantly smaller than a conventional Tesco Express and with food-to-go dominating the ranges, lack space to include a wider convenience offer beyond this.

Despite the opportunities of the London market, the high costs of operating in the city clearly have been a challenge to these trial stores. The food-to-go market has indeed expanded significantly in the last 15 years, with many specialist chains emerging to meet the growing expectations of more demanding consumers, with an expanding a palette of tastes and needs. (www.igd.com)