Star musicians and your favourite Times writers at the Albert Hall
TESCO, the supermarket group, has fired a warning shot in the direction of high street clothing and homewares stores with plans to open two large stores selling non-food items.
The retail chain confirmed yesterday that it is to open two stores of 30,000 sq ft — a third the size of an average Tesco supermarket — in a trial operation.
The stores, called Homeplus, will be opened in Manchester and Aberdeen in October and will each have 100 staff. They will be conversions of existing retail park Tesco branches and will sell a range of goods from clothing to entertainment and homewares and electrical goods.
About 20 per cent of Tesco’s total sales come from non-food items, giving the group a 6 per cent share of the higher-margin non-food market.
The group, which achieved profits of £2.03 billion last financial year, is thought to have added about £1 billion of extra non-food sales over the past year. But analysts said that Tesco was likely to approach the stand-alone format with caution. Andrew Kasoulis at Credit Suisse First Boston said: “[Tesco] will need to trade through two Christmases to see how it will fare. It will not decide on a roll-out quickly. But if the footfall is high enough then it may prove to be something of an extra string to Tesco’s bow.”
Grocers’ non-food sales have soared by 60 per cent over the past five years. In 2004 they stood at £13.5 billion, accounting for 12.2 per cent of the total non-food market. Verdict, the research consultancy, forecasts that the grocers’ market share will rise to 12.7 per cent this year.
Asda, Tesco’s smaller rival, already has a non-food store chain, Asda Living, although it consists of just two branches at present.
Follow our three athletes' progress in their preparations for the London Triathlon, and pick up training tips and more
Enjoy screenings of all the classic films you love, plus take advantage of two-for-one tickets
We explore leisure activities that are safe and suitable for all of the family
Times Online's new TV show helps you make the right decisions for your pet
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers


£129,500
Bentley Edinburgh
£79,850
Mercedes-Benz of Northampton
£26,995
Unit 1, Woodfield Business Unit, Kidderminster Road, Ombersley, Worcester.
Great car insurance deals online
90k + Bonus + Options
Confidential
London
£23,716 +
Highways Agency
National
£
£43,405 - £48,228 pa
Notting Hill Housing
London
£30,000 base, £100,000 OTE
Riches Consulting
London/South
with annexe accommodation and 5.25 acres
£1,100,000
Beautiful Gardens w/ stunning Thames Views
Studios £33K, 1 Beds £60K, 2 beds £79K
Mortgages, bank acc & money transfers to help you buy abroad
Explore mystical Jordan
From £1030 for 7nts 4*
to USA's Most Cosmopolitan City; San Francisco!
£POA
Book Now for Winter 08/09 and Get 10% off!
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Search globrix.com to buy or rent UK property. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.