„Tour de Tesco” continuing

The minimum size for Tesco stores is 1,000 square meters. They opened 22 stores in Hungary last year, making the total 122. The price sensitivity of Hungarian consumers has become even more marked than before. The Christmas season however, turned out to be more rewarding than expected in all major categories. Sales showed dynamic growth. Private label consumer electronics under the name “Technika” have also turned out to be a success. In addition to 9 hyper markets and 12 supermarkets opened last year, Tesco also opened its first Tesco Express convenience store in Szeged. The first of the so called “green” Tescos was opened in Sátoraljaújhely, with a significantly reduced energy consumption. Expansion of the petrol station chain also continued. At present, their 45 units make them the fourth in the Hungarian market. They were also the first to start selling E-85 ethanol. The assortment shows no major changes, with food items still accounting for 75-80 per cent of sales. Tesco Színes products were introduced in September, last year. These are brand quality private label products sold at a 20-30 per cent lower price than branded products. A total of 1,200 products in four categories were introduced, achieving a 8-11 per cent share from total sales by the end of the year. In addition to bio products, organic products also appeared in 2007, as well as Fair Trade products in the coffee category. The expansion the wine assortment was an extraordinary success. The proportion of Hungarian suppliers is still 75-80 per cent among food products and Tesco intends to keep it this way. Tesco will continue its expansion in 2008, with up to ten new supermarkets and several hyper markets. Tesco Express convenience stores will also appear in Budapest and large cities. The total number of Tesco stores will exceed 130 by the end of the year, while the number of petrol stations will be 50.