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Tesco plans to slash drinks range

The UK’s biggest supermarket and drinks retailer Tesco is planning to cut its range of wine, beer and spirits by a third, according to reports.

An investigation into Tesco's accountancy practices also revealed the movement of payments to suit financial announcements (Photo:Wiki)
The supermarket is still fighting to recover after its profit “black hole” scandal last autumn (Photo:Wiki)

Tesco’s embattled chief executive Dave Lewis has told suppliers that the company has called in management consultants to advise on “dramatically reducing” the number of lines it offers, Off Licence News has claimed.

Retail consultancy firm BCG is reportedly advising on a 30% cut to Tesco’s drinks range, as well up to 40 other divisions that face the same level of losses.

A Tesco spokesperson confirmed to The Grocer: “We having been working with BCG for some time on a number of things and we are looking at range reviews. The review is ongoing and no changes have yet been set.

“There is no specific change to the role of our buyers but we have been saying we want to use front margin rather than back margin as the basis of our trading.” In other words, the supermarket is looking to focus on a simpler relationship with its suppliers.

The drinks business has contacted Tesco’s beer, wine and spirits division for a specific comment on the fate of its drinks range, but has not yet received a response.

Meanwhile, reports are linking the former deputy chairman of electronics retailer Dixons Carphone John Allan to the the top job at Tesco.

The role has been vacant since October last year, when then chairman Sir Richard Broadbent departed during the fallout from the company’s £263 million profit overestimation, which also saw suspensions and sackings among eight executives dubbed The Cheshunt Eight.

Within these eight executives is the suspended head of the company’s beer, wine and spirits division Dan Jago, who still remains in the dark after three months.

Correction: We previously attributed the Tesco quote to IGD Retail Analysis. This has been amended to cite The Grocer. 

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