Tesco's UK boss, Jason Tarry, has issued a stark warning to the retail sector, stating that relying solely on low prices won't be enough to support struggling shoppers amid the ongoing cost-of-living crisis.
In a candid assessment of the challenges facing supermarkets, Tarry revealed that customers are increasingly forced to make "tough choices" as inflation continues to squeeze household budgets. The Tesco chief emphasised that retailers must go beyond price cuts to truly help consumers weather the economic storm.
The Reality of the Supermarket Squeeze
Tarry's comments come as new data shows:
- Food inflation remains stubbornly high at 9%
- 1 in 5 shoppers are skipping meals to save money
- Premium product sales have dropped by 15% industry-wide
A New Approach Needed
"Price is important, but it's not the only factor," Tarry explained. "We're seeing customers trading down, buying less, and visiting stores less frequently. This requires a fundamental rethink of how we support them."
Tesco is now focusing on:
- Expanding its budget-friendly "Aldi Price Match" range
- Increasing promotions on staple items
- Boosting its Clubcard rewards programme
The Bigger Picture
The retail boss's warning reflects wider concerns about the sustainability of current supermarket models. With energy costs rising and supply chains still recovering from pandemic disruptions, the sector faces unprecedented pressure to balance affordability with profitability.
As Tarry put it: "This isn't just about getting through the next quarter - we need long-term solutions that protect both customers and the industry."
