Now the top UK grocery retailer is taking a fresh look at its business units and its store network. The goal is to cut costs so Tesco can prepare for revenue and profit improvement.
Not surprisingly, Tesco will close 43 unprofitable stores and halt plans for 49 new stores--which would have been giant stores not favoured by today's busy shoppers. The company is reducing its workforce, consolidating headquarters and making other changes to slash expenses. And, not surprisingly, it's selling Blinkbox, Tesco Broadband and other non-store ventures, which makes sense.
It is surprising that Tesco would arrange to sell Dunnhumby, its Big Data division, given how vital the data-driven Clubcard scheme has been to the company's long-term increase in turnover. Here's what the Tesco site says about Dunnhumby:
dunnhumby helps Tesco and our suppliers around the world to put the customer at the heart of decision making and thereby earn their lifetime loyalty. Their insights help us stock the right products, optimise prices, run relevant promotions and communicate personalised offers for customers across all contact channels.Tesco will, of course, continue as a Dunnhumby client.
