Horse Today, Gone Tomorrow: Horsemeat sullies Tesco’s sales

In Customer Experience, Featured on App, Loyalty & CRM, Marketing and Sales by Vaughn Highfield

Horse Today, Gone Tomorrow: Horsemeat sullies Tesco's sales

In January a spate of horsemeat related issues cropped up across the UK as seemingly trustworthy supermarkets were quickly pulling various meaty goods off the shelves as traces of horse DNA turned up in consumers foods.

Since then, Tesco has reported that it's sales over the last three months have fallen and that the entire horsey scandal had a "small but discernable impact" on the frozen and chilled food sales.

Year-on-year sales dropped by 1 per cent during the 13 weeks ending 25th May 2013.

Even sales of its non-food items fell short of expectations, meaning that Tesco has decided to cut back on its range of electronic goods.

It's been a tough year for the supermarket as April heralded the first fall in annual profits for 20 years, however this has given it a new vigour as it plans to roll out a refit of almost 70 of its larger outlets.

Tesco have already implemented safeguards to ensure their food will be of the highest quality, hoping to avoid a repeat performance as their own-brand food was found to be contaminated.

Since doing so, Tesco report that its frozen and chilled foods have picked up in sales.

That's only half the battle though as Tesco are clearly remembered as the brand in the centre of the entire meaty scandal. Other brands managed to avoid the negative attention, instead focusing on how their products and  production chains are far more transparent.

Tesco does have a worldwide battle to deal with though as it's Fresh & Easy chain in the US has never turned a profit, costing the company $1.2bn. In Europe its facing "challenging conditions," according to a Tesco representative, and in China it's struggling due to the bird flu crisis and a drop in demand for pork products after a food safety scare in the nation.

While it certainly seems that Tesco could be shedding the nasty image they picked up during the horsemeat scandal, will it ever go away completely?

Will they regain the consumer trust they lost?

Let us know by leaving a comment below or interacting with us through Twitter or our LinkedIn group.


[Image: plastic Jesus art – Flickr]

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