Press reports indicating that Tesco are about to extend their franchise into the sale of second-hand cars are generally relating the initiative to the stereotypical behaviour of ‘Arthur Daley’ and other old-fashioned car salesmen, and are tending to echo the traditional car-trade’s semi-sarcastic reaction to the news.
However, fear would be a more appropriate emotion…
As all Tesco NAMs appreciate, Tesco are seriously restricted by competition legislation from extending their share of food categories in the UK. This means that in order to sustain UK growth their main focus is on non-food, with a passionate interest in shopper satisfaction. Following similar moves in the pre-owned games category, Tesco will elevate the sale of second-hand cars to new levels, in terms of quality, reliability, value for money and trust. And all of this aimed at building repeat business.
Additional car-category ‘no brainers’ will probably include BOGOFs, His ‘n Her offers, car insurance, easy payment schemes, servicing and tyre-replacement…
And who knows, eventually a move into new-cars and even private label?
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