Alliance hopes for more fresh produce from Tesco

A FEW years after it was strongly rumoured to be considering establishing in Guernsey, Tesco has finally made it to the island – through a deal with Alliance supermarket.

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Alliance managing director Andrew Bagot

A FEW years after it was strongly rumoured to be considering establishing in Guernsey, Tesco has finally made it to the island – through a deal with Alliance supermarket.

The locally-owned store has been slowly testing Tesco products for a few months.

But now about 20% of its lines – some 3,000 different products – will come from the UK’s biggest supermarket chain, and that will expand over the next six months with the introduction of fresh produce.

Alliance managing director Andrew Bagot said that stocking Tesco’s Everyday Value, Tesco and Finest ranges was already paying off at the tills.

‘Guernsey word of mouth is legendary and there has been a fair amount of discussion about what we’re doing and this has brought new customers in – at the moment between 800-1,000 customers extra a week.

‘That’s very encouraging. People are coming in to have a look and the reaction we have had has been extremely positive.’

Comments for: "Alliance hopes for more fresh produce from Tesco"

Terry Leahy

So this is why Tesco's share price has dropped 8% in the last few days?

BadDonkey

I find it very interesting that Tesco and other leading chains in the UK have to use a concession to sell their goods. Cherry picking ?

Jonathan

Yes they are cherry picking, at least Waitrose committed to the islands and use local suppliers where possible, something that Tesco do not do.

Terry Langlois

You must have a short memory. Before Waitrose came here they we doing exactly what Tesco are doing, with Checkers. At that point they were not using local suppliers either. This arrangement with Alliance might be a case of Tesco testing the market before buying Alliance.

Olive

Iceland did the same by bringing in products to Checkers before opening two stores.

I would welcome a Tesco over here as I am sure many other people would.

Just Sayin'

Olive,

Slightly different - Iceland is opearted as a franchise by SandpiperCI - a Channel Island company (ex Checkers people, the bought out Le Riche in 2007). So whilst Checkers stocked the Iceland product it was still the same company that operated the Iceland store. However, Sandpiper sold the two superstores (Checkers and Safeway) to Waitrose and that isn't a franchise, that's solely operated by Waitrose. So really Alliance could perhaps do a Tesco franchise (I think Tesco allow franchises outside of the UK), I doubt very much they would sell to Tesco as I doubt very much Tesco would be very interested in operating a store in an area with a small demographic (by Tesco standards)

Nick Le P

Of course I don't speak for Tesco but here in Eastbourne with a population of circa 90,000, we have -

1 Superstore, 3 Metros, and 4 Express stores, with another Express due to open very soon. 3 of these are within a 2 mile radius.

Of course we have all the other major brands too, including Lidl with exception of Aldi.

So I am just saying Guernsey may not be too small after all.

Peter

Pity their prices are not the same UK tesco. That would triple their customer base and screw all the other so called cheap outlets.

BadDonkey

As I said earlier Concession , the middle man spoils the products pricing. We all know this isnt Tesco pricing. VAT + Freight (10%)

Arkwright

I agree Peter, and I can't affort to shop at Waitrose at their prices or M&S with CAT (Creasey Added Tax) being applied on everything - sometimes it seems on top of the VAT inclusive prices!

There are some very good comparison sites on the net - I am sure Mr Co-op and Mr Waitrose that it doesn't cost 69p to bring in Chorley cakes (Morrisons price £1 (not a promotopnal offer) Guernsey price £1.69!

Just Sayin'

Co-op is a cooperative and Waitrose is a partnership - therefore...no Mr Co-Op and no Mr Waitrose. Profits are passed on to the staff/share holders.

Sapphire

Yes I noticed that ...also some of the products have gone up in price since first appearing on the local shelves ....went back to get a product the other day only to find it had gone up 22p not much i know ...but didn't buy it on principal.

Time Will Tell

Time will tell but this could be the signal of an increasing co-operation between the two. This could even lead, in the future, to the purchase of Alliance by Tesco - clearly not a bad site for development in order to get a foothold into the Island.

Victor Meldrew

Some like Tesco, some don't...but the fact is that local people are voting with their feet.

Alliance, being an independent retailer, are in the perfect position to put this to the test. They'll find it difficult to match prices to the penny because of the freight costs..but they've done a darned good job so far.

Squelch

What the island needs is an Aldi or Lidl, with a bit of selective shopping you can get excellent value for money at either of these outlets.

Ignorant

I concur.

Iceland shouldn't be overlooked by those needing value for money and living on a tight budget. I have purchased many great things from them in the past. The fresh fruit and vegetables leave a lot to the imagination though.

Just Sayin'

Personally I think Alliance would be a good store to stock either of these products. They are seen as a 'value' store in Guernsey.

Sapphire

ALDI for sure!!!!

john

I think this will eventually end up running Alliance (plus others) out of business if Tesco eventually decide to open a store in Guernsey.....unless they buy the lease off Alliance and open a tesco there.

It seems to be common practice for large retailers to sell their items in local shops gaining support from the local community before setting up shop here, if Tesco was to just open up here, it would split the island and we would see a lot of anger

In England large supermarkets fund community projects to get planning permission (this is legal and common practice) they build leisure centres, parks, one even built a police station....look it up.

Just Sayin'

I honestly don't think Tesco are interested in opening and opearting a store in Guernsey. We're just not big enough for them to bother with. However, they may agree to Alliance operating a franchise - but knowing the Alliance people I think they quite like being their own bosses and wouldn't worry they would be looking to sell too quickly.

Don't Panic!

Le Cocq's Stores in Alderney have operated a similar deal with Tesco for years. No sign of Tesco buying them out yet. Why would they? Tesco get to sell their products on the island with no risks and no overheads. Islanders get the benefit of slightly cheaper "own brand" goods. It's a win-win.

PB FALLA

No chance of Tesco opening here

Do your homework

I know what im talking about.

Peter

Not while States members are involved as shareholders in the rival outlets will tesco be allowed in.

"Yet another Guernsey shambles"

Moving Party

I agree.

The Tesco model would not work in the island as there is not the volume of people they need for it to work.

Same goes with the other stores ASDA, Aldi, Lidl.

Just Sayin'

Yup - concur

Caroline

OMG would it not be more simple just to open Morrisons, Sainsburys, Asda, Aldi, Tesco's etc., When are you going to realise you are a small Island, if you want to shop like this move to the UK, take all the advantages of benefits, NHS, etc., Thought you wanted to be an Island live of local produce, make your mind up. Yet another situation of cant make your mind up, want to be an Island or part of the UK. To which I will remind, you get the benefits, anyone trying to move to the Islands CANT, as you are full need a licence etc., etc.

Just Sayin'

er...who's rattled your cage?!

Surely having choice is a good thing? When it comes to local produce I buy locally where possible, however (as you've said) we're a small island so we can't make everything locally.

It's just Tesco brand products, not the store itself, calm down dear.

Delp

Ah someone's mentioned a UK based multinational company, lets get some island bashing in!

Guernsey people want to buy some Tesco's own brand ham. Guernsey removes all housing and immigration controls stopping chaos on what is essentially a 30sq mile rock (A very lovely one, I might add).

Sounds like a fair deal! Count me in.

Guernsey people buy Tesco goods - Tesco makes profit, simple business. (Of course, the UK Govt almost certainly doesn't make money, I'm SURE that VAT is removed...) Nothing to do with constitutional status as you would have us believe.

A.J.

Big business moving into the Island is not new.

When, the now famous do-it-yourself business,first became established in the Island back in the 60's,the business was run under the banner of 'Thornes,'(a long established and well know local company.) However,this created a lot of extra work for the staff, as they had to 'remove' any labelling, which might indicate tht it was a B&Q product,(due to the belief that the 'locals' would boycott the shop.) B&Q is now an established and welcome additional business in our Island, which has also created many jobs.

Island Wide Voting

I just wish,in this 21st century,that they were not prevented by draconian legislation and under pain of imprisonment, to open on a Sunday

Let's have a heated debate!

Jon

I find B&W rather expensive these days, can usually find better deals at some of the smaller hardware stores or online.

Oh Dear

It is very expensive. I don't find their products to be of a particularly high quality.

IWV, Sunday trading needs to happen!

Election Issues

Oh Dear & IWV

Sunday trading needs to happen! In fact it should be happening next Sunday and the one after that... on the lead up to Christmas!

Island Wide Voting

Keep an eye on the Press for the extra M&S opening hours on the Sunday before Christmas!

Caroline

Just sayin:: thanks for that, thought I would have nasty comments, I am making a point, you want big time move to the UK, Guernsey as a whole is finished, long gone the hedge veg and local stores, sorry to say but cashing in on commercialism. Very bad scene, Guernsey no more.

Kittycat

I HATE Tesco with a passion, they seem to be trying to take over the world. They pretend to be such great value and they're not - scam after scam making you think you're getting a deal when actually they've jacked their prices up and ripped you off. They were voted the worst supermarket in the UK. If we're going to have a proper budget supermarket (and I do think we need one, most of us sadly can't afford Waitrose) then make it Aldi - they got the top vote, I believe. Though truth be told I'd rather not have anymore UK chains.

Tesco, like McDonalds, is one of the things I am very proud to say we do not have in Guernsey. Here's hoping we can keep it that way.

Oh Dear

It appears as though Aldi's advertising campaign has worked on you.

Kittycat

Actually it was my gran! She gets Which? magazine who did the survey and the supermarket comparisons etc. They outline the various scams that these shops use on a regular basis to make you think you're getting good value, it made me so angry. If we get another supermarket I'd at least like it to be a) reasonably priced and b) honest!

But like I said, I'd rather not have any more UK chains at all.

Oilcan Annie

I am with you Kittycat, Tesco is a very poor supermarket compared to the others.

Endless shelves of their own, usually poorer quality own brands, grubby and run down stores with ugly exteriors.

Tesco in Guernsey, no thanks, Waitrose beats them by a mile.

Peter

I disagree with you about Tesco, the Co-Op is the poorest quality own brand food and the worse for rip off prices.

A.J.

I am seriously considering avoiding Co-Op for bread.There own brand is tasteless, and as for Kingsmill ugh!!

last week I went to spend my 'free' voucher on fuel only to discover that 'Surprise-Surprise' there has been a sudden price increase! Rip off CO-OP I'm ashamed of you.