Organisation: Tesco

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Analysis and commentary by Echo Research.

Tesco's announcement of its bid for Adminstore, the London chain of Europa, Cullens and Harts convenience stores, was a predictably noisy affair. The £54 million bid to increase its share of the convenience store sector, seen as the next battleground of the giant food retailers, prompted squeals of protest from the Big Food Group and unleashed a stream of unflattering comment about the Tesco "juggernaut that smashes over anything in its way"(Telegraph, 25/1). Objections were based on the view that Tesco was abusing its dominance in the one-stop grocery sector in order to milk the convenience store sector for further profits, and that the deal should be blocked. Tesco had its ammunition ready, however, with the messages that it would have only a six per cent share of the convenience store sector even after the Adminstore acquisition, and that the consumer would benefit from lower prices and greater choice, in true Tesco fashion. But it was clear that the Tesco PR machine was used to dealing with heavier gunfire than a few corner-shop potshots. "You do tend to get a bit of noise on these occasions"was the sanguine comment of a Tesco spokeswoman (Guardian, 23/1), suggesting that Tesco is preparing its war chest for greater things.